Over the past five years, my recommended stocks in the wiki Global Champions have only yielded a 59 percent increase. In contrast, the MSCI World index has shown a remarkable growth of 88.5 percent. This raises an intriguing question: what accounts for this disparity?
A recent discussion in the Facebook group ‚Kleine Finanzzeitung‘ brought this issue to light, prompting me to address it both there and here on my platform, grossmutters-sparstrumpf.
While some have sought insight from AI tools like Chat GPT, the analysis it provided fell short of accuracy, attributing the lackluster performance of my wiki to stocks such as Chipotle and Intuitive Surgical.
Key factors influencing performance
To clarify, this conclusion was misleading. The AI likely focused on the stocks currently held in my portfolio, neglecting crucial historical context. For instance, while Chipotle has recently lagged slightly behind the market in euro terms, its impact is minimal compared to other factors.
One primary reason for the underperformance of the wiki is the substantial management fees, which range between 2-3 percent annually. Over time, these costs accumulate significantly. Additionally, my private account benefits from dividends associated with American stocks, a benefit not captured in the wiki’s structure, leading to a further loss of approximately 1 percent. Hence, while the wiki reflects a 59 percent gain, my private portfolio has achieved an impressive 88.5 percent increase as of August 14, 2025.
Stocks that impacted returns
Analyzing individual stocks reveals that three major holdings—Disney, Starbucks, and Nike—have significantly dragged down performance. These stocks have been systematically reduced from my portfolio, a fact that likely escaped the attention of Chat GPT.
At present, both Novo Nordisk and Chipotle find themselves in a sharp correction phase, further complicating the performance landscape. Moreover, I hold several turnaround stocks such as Peloton, Docusign, PayPal, and Etsy, which, while showing signs of recovery, have not yet reached the anticipated performance levels.
Lessons learned from investment strategies
Reflecting on my strategy, I recognize that I often entered these positions too early or added to them prematurely. Though there is potential for recovery, the path has been more prolonged than expected, a lesson in patience and risk management. In hindsight, reallocating funds to a stock like Microsoft would have likely been a more prudent decision.
Specific stock analyses
Taking a closer look at Disney, my early decision to halve my investment and redirect funds into Netflix proved beneficial. However, my reluctance to divest completely from Disney resulted in missed opportunities. Similarly, my experiences with Starbucks reflect a pattern of holding too long despite making some trades to mitigate losses.
When it comes to Nike, the losses have been particularly pronounced, showing a nearly 28 percent decline over five years. These setbacks have prompted me to reevaluate my approach to investment recovery strategies.
Peloton, representative of stocks that have undergone turnaround efforts, has shown a year-over-year increase of 170 percent. However, due to my initial purchase timing, I endured significant losses along the way. To break even, Peloton would need to reach $11.50, and to match the MSCI World index performance, it would need to climb to $23.
Future investment considerations
Given my current insights, I would likely adopt a more cautious approach toward turnaround stocks in the future. This caution extends to high-growth stock investments, which, while yielding substantial returns in some cases like Crowdstrike with 340 percent growth, have overall underperformed expectations.
As I conclude my reflections, I must touch upon Nvidia, a stock that has proven to be a significant success. Despite initial hesitance, my eventual investment has yielded over 1,500 percent in returns. Looking back, I recognize that I should have committed to Nvidia earlier, ideally in 2018, when the trajectory of AI development was becoming clear.
Ultimately, the lessons learned from these experiences emphasize the importance of timing and position size in investment strategy. Aiming for larger positions in future high-potential stocks could yield even greater returns.
In summary, while the past five years have presented challenges, they have also provided invaluable learning experiences. With a focus on refining my investment approach, I look forward to navigating future market fluctuations with greater insight.