CELI Challenge - $1,000,000 by 2023

PokerCollectif is pleased to partner with EspaceMC (www.espacemc.com), a blog on the focused investment in the stock market launched by Philippe Bergeron Bélanger, better known under the name of Darrrrk on the forum, and Aaron Lanni. On the menu: articles on their investment philosophy on investment, ideas to create value in your portfolio and stock market and economic news.

Celi - challenge $ 1,000,000 by 2023

Inspired by the MoneyGeek blog, I will myself, Philippe Bergeron Bélanger attempt to take up the challenge to achieve a balance of $ 1,000,000 in my tax-free savings account (TFSA). Like Dr. Jin Choi, I'll give an update of my balance each month and comment the yields obtained. As of September 12, 2014, my TFSA had a balance of $ 101,622. I began to compromise in my TFSA on 5 June 2013, which represents outstanding performance of 228 per cent in 15 months on the ceiling of contributions of $ 31,000.

Do I was lucky? Probably. Without the help of my colleague Aaron Lanni, never I would have heard of Biosyent (RX - see initial analysis here: http://espacemc.com/idees-dinvestissement/biosyent-rx-v) or Xpel Technologies (DAP.U - See initial analysis here: http://espacemc.com/idees-dinvestissement/xpel-technologies-dap-u-v) that a little over a year ago. Today, these two companies allowed me to earn yields of 394% (closed position) and 497% (open position) respectively in my TFSA (note: I also hold these companies in other personal accounts). That said, it was necessary to have the courage to buy these companies before the market recognizes the correctness of his theory of investment. He had to have the courage to maintain its position despite the fluctuations in the market. More importantly, I learned an important lesson: do not hesitate to add to its position when the available information suggests that the company is significantly undervalued and this regardless of the price paid for the purchase of the first actions. Recently, I added the DAP.U $ 1.73, or more than 3.7 x what I paid initially. Why? Because, sometimes, the best investment idea is already in your portfolio.

I hope that my monthly reports will help you improve your stock market returns. I intend to be 100% transparent with readers of this blog and it is for this reason that I will disclose my positions at the end of each month. For this first entry, since this is not an end of month, here's my portfolio composition as of today (15 September 2014):

45,000 shares of Avante Logixx (XX)
11,900 shares of Covalon Technologies (VOC)
45,000 shares of International Barrier Technology (IBH)
1,500 stock options at $ 5.00 (deadline March 20, 2015) of Mandalay Digital Group (MNDL)
35,450 shares Microbix Biosystems (MBX)
10,000 shares of Xpel Technologies (DAP.U)

As you have noticed, my portfolio is composed 100% of stock until, mainly on the TSX Venture. It is difficult to identify a reference index which has a similar risk profile so I am just going to mention the performance of the relevant indices at each update: TSX Composite, S & P500, Russell Microcap Total Return and TSX SmallCap.

For your information, June 5, 2013 to September 12, 2014:
TSX Composite = + 15.4%
S & P500 = + 10.3%
Russell Microcap Total Return = + 27.7%
TSX SmallCap = + 13.3%

In my opinion, for a portfolio on micro-capitalization, we must aim a performance of at least 30% per year on average. At this rate, I should reach my goal in a 9-to 10-year horizon. Dr. Choi is given until 2033 to succeed his challenge; its strategy is more conservative than mine because he has almost completely sold its positions. Personally, I want to get there 10 years earlier, in 2023. 

Who wants to take up this challenge with me?

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