In recent years, discrepancies in stock performance have become a topic of discussion among investors. A member of the Facebook group ‚Kleine Finanzzeitung‘ raised an intriguing question regarding why the wiki Global Champions portfolio has only achieved a 59 percent return over the past five years, while the MSCI World Index has outperformed with an impressive 88.5 percent gain. This article delves into the reasons behind this performance gap.
Initially, it is important to note that the high fees associated with the wiki Global Champions, which range from 2 to 3 percent annually, have significantly impacted overall returns. Unlike my private portfolio, which benefits from dividend payments on American stocks, the wiki does not account for such distributions, thereby causing an additional loss of around 1 percent in potential gains. Consequently, while the wiki stands at 59 percent after five years, my private investments reflect a much healthier growth of 88.5 percent as of August 14, 2025.
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Identifying the key factors affecting stock performance
Several stocks have notably hindered the wiki’s performance, particularly three major players that are no longer part of the portfolio: Disney, Starbucks, and Nike. These stocks, which were once significant holdings, have been gradually reduced over time. Additionally, current fluctuations in the market have affected two critical stocks: Novo Nordisk and Chipotle, both of which are experiencing substantial corrections.
Challenges with turnaround stocks
Within the portfolio, several turnaround stocks are present, including Peloton, Docusign, PayPal, and Etsy. While these stocks may have shown potential for recovery, their performance has not yet met expectations. My investments in these areas were perhaps premature; I bought in too early or added to my positions too soon. The anticipated recovery has taken longer than expected, which introduces a level of risk. Ideally, reallocating funds from these positions to a stable stock like Microsoft might have proven more beneficial.
The experience has taught me to approach turnaround investments with more caution in the future. I recognize that while some stocks like Nvidia have been successful, others have not fared as well. For instance, the Disney stock initially performed poorly, prompting me to reduce my position and invest in Netflix, which turned out to be a wise decision.
Evaluating individual stock impacts
Among the stocks that have detrimentally affected my portfolio, Nike stands out as a significant underperformer, with a decline of nearly 28 percent over the last five years. This stark loss emphasizes the challenges of holding on to certain positions for extended periods without reassessment.
The case of Peloton and its potential
Peloton serves as an example of a stock that has seen a substantial rise of 170 percent year over year; however, the timing of my purchase was less than ideal, leading to earlier losses. To break even, the stock needs to reach approximately $11.50, while a return to $23 would align it with the expected performance of the MSCI World Index. Reflecting on this, it is clear that I would not pursue such speculative turnaround investments again without a more measured approach.
Despite the setbacks, the high-growth stocks category has yielded mixed results. While some, like Crowdstrike, have produced impressive returns of 340 percent over five years, others have not performed as expected. This situation leads me to conclude that my experience with high-growth stocks has not been disastrous, but it has also not been particularly rewarding.
Lessons learned from Nvidia and future considerations
Reflecting on my experience with Nvidia, I am grateful for having made the investment, which has yielded returns exceeding 1,500 percent. However, I recognize that I hesitated for too long before entering this market. Had I acted sooner, perhaps in 2018 when the potential for AI development was evident, my returns could have reached an astounding 2,700 percent.
In summary, while the fluctuations in the dollar exchange rate have recently impacted investment values, they have not significantly influenced my overall portfolio performance over the last five years. The Euro has experienced minimal decline, resulting in a slight positive effect, but broader trends show that long-term investments are less affected by short-term currency fluctuations.
