In the past five years, the stocks I’ve recommended have only shown a 59 percent increase, while the MSCI World Index has significantly outperformed with an increase of 88.5 percent. This raises an important question: what has led to this disparity?
A member of the Facebook group ‚Kleine Finanzzeitung‘ recently posed this question.
My initial response was shared within the group, but I felt it necessary to provide a more detailed explanation here on my blog.
The Role of Fees in Performance Discrepancies
One key factor contributing to the underperformance of my selected stocks is the high fees associated with the wiki Global Champions. These fees range from 2 to 3 percent annually, which can accumulate to a significant amount over time. Moreover, my personal investment account benefits from dividends earned on U.S. stocks, a feature not available in the wiki. This results in an additional loss of about 1 percent in potential earnings.
Consequently, while my wiki portfolio stands at a mere 59 percent increase over five years, my private investment account has thrived with an 88.5 percent rise (data as of August 14, 2025).
Impact of Past Investment Decisions
The individual stocks that negatively impacted my portfolio are not even present anymore, having been removed in the past year. These include Disney, Starbucks, and Nike, all formerly significant holdings that I gradually reduced. Additionally, I currently hold two major stocks, Novo Nordisk and Chipotle, which are both experiencing substantial corrections.
Furthermore, I have several turnaround stocks in my portfolio that, while they may have shown signs of recovery, still lag behind expectations. These include companies like Peloton, Docusign, PayPal, and Etsy.
Assessing Turnaround Stocks
For each of these turnaround investments, I either entered the market too early or added to my positions prematurely. The recovery for all these stocks has been slower than anticipated, which is a clear risk associated with such investments. Ideally, reallocating funds to established companies like Microsoft may have yielded better results instead.
Reflecting on my approach to turnaround stocks, it’s evident that I need to exercise more caution in the future. The next insights pertain to my experiences with Nvidia and other tech stocks.
Individual Stock Challenges
One of my most significant losses came from Disney. Fortunately, I managed to cut my position in half early on and reallocated those funds into Netflix, which proved to be a wise decision. Unfortunately, holding onto my Disney shares for too long did not pay off.
Starbucks also heavily affected my portfolio. Although I made some adjustments by reducing my stake and investing in Chipotle, I retained my Starbucks shares for too long as well.
Another major disappointment arose from my investment in Nike, which is currently my most significant blue-chip loss over the past five years, with a staggering decrease of nearly 28 percent.
Evaluating Future Strategies
Using Peloton as a case study, it exemplifies the potential for recovery without achieving significant gains as of yet. Currently, Peloton has surged 170 percent year-over-year, making it one of my best-performing stocks during this period.
However, my initial purchases were made much earlier, leading to considerable losses along the way. To break even, Peloton needs to reach around $11.50, while hitting $23 could place it on par with a basic MSCI World investment.
In retrospect, I would not pursue such risky turnaround investments again. The stock’s performance has been troubling, with a 87 percent drop over five years. My decision to hold on during previous downturns stemmed from an overly optimistic view of the company’s potential.
The Importance of Strong Branding
What has always favored Peloton is its robust brand and loyal customer base. I invest in strong brands, and Peloton’s scalable online course concept further intrigued me due to its high margins.
Similar patterns can be observed with Etsy, Docusign, and PayPal; I regret having reinvested in these stocks too early. Patience could have significantly improved my current standing.
While my focus on high-growth stocks hasn’t been disastrous, it hasn’t delivered exceptional results either. For instance, Crowdstrike has performed remarkably well, boasting a 340 percent increase over five years, demonstrating that not all high-growth investments are equal.
Learning from Nvidia’s Success
Looking at Nvidia, I’m grateful I finally made the decision to purchase shares, as they currently represent a remarkable 1,500 percent gain. Without this investment, my overall performance would likely lag behind the index.
However, I reflect on my hesitation around Nvidia. I should have invested earlier, ideally in 2018 when it was clear that the future of AI was aligning with Nvidia’s trajectory. Had I acted sooner, my returns could have reached an astonishing 2,700 percent.
Moreover, I was overly conservative with my initial investment in Nvidia, allocating only 1 percent of my portfolio. A more aggressive approach of 2 or 3 percent would have drastically changed my returns, overshadowing any concerns over other stock choices.
Ultimately, I don’t dwell on past mistakes. My performance over the years has been strong enough to encourage learning rather than regret. In the future, should I encounter another opportunity like Nvidia, I plan to invest a larger portion of my capital, aiming for at least two and a half percent.
Conclusion
As we conclude this analysis, it’s essential to note that fluctuations in currency, such as the euro to dollar exchange rate, have not significantly impacted my long-term investment performance. Over five years, the currency variations were negligible, demonstrating that the underlying asset performance is of greater importance than exchange rates.
In summary, while my past five years have shown some challenges compared to market indices, there are valuable lessons to be learned from both successes and setbacks. Moving forward, I remain committed to refining my investment strategies and learning from past experiences.