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RETURN AND RISK
When 2023 ends in a few months’ time, it will be 15 years since we switched to our current investment strategy for the Fund. While in reality that is almost 5,500 days of waking up and falling asleep thinking about our investments, looking back it seems like a blink of an eye. The oft-repeated saying about how fast time flies is unfortunately one of those inexorable truths.
Vltava Fund’s overall return across this period is 420%, which is approximately 11.8% per annum. The MSCI World Index, which is the logical benchmark for a global equity fund such as Vltava Fund, has increased by 232% over the same period (approximately 8.5% per annum). You know these numbers from our regular monthly Fact Sheets and it is almost unnecessary to repeat them here. I mention them only as an introduction to the topic I want to address today, which is risk.
When people talk about investing, the question of returns is very typically the central focus. They discuss the returns of individual stocks, indices, portfolios, returns over various past time intervals as well as expected returns in the future. I have written about this before, but, interestingly,…
