The Last Day of 2024: How Many Tiger Users Did My Returns Beat?

As we wrap up 2024, it’s a natural time for reflection. It’s the day when I can look back at the decisions I’ve made and assess how they’ve panned out. This year, my YTD return was 6.95%, which was better than 48% of Tiger users—an outcome that makes me both content and reflective. But, as I analyze this return, it’s clear that there’s much more beneath the surface. My return didn’t meet my goal of doubling my money, and it was less than the performance of the S&P 500 index. Yet, I remain optimistic and firm in my belief that investing is not a competition.

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Why I Prefer Self-Managed Investing?

1. Control and Freedom of Choice: One of the most compelling reasons I prefer managing my own investments is the control it gives me. When you invest in funds, you often delegate decision-making to fund managers, who have their own priorities, timelines, and strategies. By managing my own portfolio, I can act quickly when opportunities arise and pull out if a situation doesn’t feel right. I also don’t have to worry about aligning with the fund manager’s specific goals. For instance, some fund managers may be more conservative and aim for slow and steady growth, while I might be more aggressive or opportunistic depending on market conditions.

   Managing my investments allows me to tailor the portfolio to my personal preferences, risk tolerance, and market analysis. This control empowers me, giving me the confidence that I’m taking responsibility for my financial future. Moreover, I can avoid the limitations or biases that some fund managers may have.

2. Avoiding High Fees: Investment funds often charge management fees, performance fees, or other costs that can significantly eat into your returns over time. While some funds perform well and justify their fees, many others may not meet expectations, leaving you with disappointing returns after fees have been deducted. This is a key reason I choose to invest on my own. By doing so, I avoid paying for someone else’s services, and every dollar of profit I make stays in my pocket, enabling my returns to compound faster. Over time, these savings can make a substantial difference, especially when comparing the costs of active funds versus passive investing strategies.

3. The Value of Self-Education: Investing on my own forces me to educate myself. Every stock I research, every investment decision I make, and every mistake I learn from helps to sharpen my skills. While having a fund manager may seem like an easy solution, it removes the opportunity for growth and personal development in investing. By relying on my own judgment, I continuously improve my ability to assess risk, understand market trends, and make informed decisions.

   Furthermore, self-directed investing keeps me engaged. It pushes me to read more, understand the markets better, and stay on top of economic and industry news. This active involvement increases my financial literacy, which will pay off in the long run, even if my short-term returns are modest.

Performance in 2024: A Mixed Bag

While my return of 6.95% YTD is relatively modest, it outperformed 48% of Tiger users, which is certainly a positive. However, it didn’t meet my benchmark: I had hoped to double my investment this year. I also recognize that if I had simply invested in an S&P 500 index fund, my returns would likely have been higher, as the S&P 500 outperformed my individual portfolio in 2024.

However, focusing solely on whether I beat the S&P 500 or outperformed the majority of Tiger users misses the bigger picture. Investing is about long-term growth, not about winning short-term battles. The S&P 500 is a solid benchmark, but it’s not the end-all for every investor. For instance, an investor with a higher risk tolerance may find that their personalized portfolio better aligns with their financial goals, even if it underperforms the index in a given year.

I also recognize that beating 48% of Tiger users isn't a trivial feat. In a platform like Tiger, where there are a large number of active and often sophisticated traders, achieving a performance that exceeds almost half of them is a solid outcome. It’s important to not get fixated on whether one’s returns match those of a specific index or a set of other users. The broader objective is growth and financial independence, not comparing myself to every trader out there.

Investing Isn’t a Competition

In finance, it’s easy to fall into the trap of treating investing like a competition. There are many platforms, newsletters, and social media channels where traders and investors share their daily or monthly returns, often with a tone of superiority when they’ve outperformed others. This kind of comparison can lead to unnecessary stress and unhealthy decision-making, especially if the goal is to “win” at investing, rather than grow wealth sustainably.

My return of 6.95% isn’t a massive leap, but it’s certainly better than keeping my money stagnant in a savings account or buried under my mattress, where inflation would eat away at its value. In the broader context of financial planning, that return is part of a long-term journey. It’s not about chasing big wins every year; it’s about consistent growth, understanding your own financial goals, and managing risk effectively.

Contentment Over Perfection

Sometimes, the best approach to investing is one of contentment rather than perfection. Here’s why:

1. Any Positive Return is Progress: A 6.95% return isn’t going to change the world, but it’s still growth. In a year where the market can be unpredictable, having any positive return is an accomplishment. A single digit return is still better than losing money, which many investors experience during market downturns.

2. Better Than Doing Nothing: If I had kept my money in a savings account, inflation would have slowly eaten away at its value. Instead, my 6.95% return means I’ve generated some tangible growth. In contrast, many others who stuck to safer, more passive investment strategies (like savings accounts or bonds) may have seen minimal or even negative returns when accounting for inflation.

3. Long-Term Perspective: Investing is a marathon, not a sprint. While I didn’t double my money as I had hoped, I didn’t take any undue risks either. The 6.95% return, when compounded over many years, will still build wealth. Slow and steady growth is better than gambling with high-risk strategies that could yield catastrophic losses. Sustainable investing practices are key to building long-term wealth.

Lessons for 2025 and Beyond

As I look forward to 2025, I have several takeaways that will guide my investing approach:

1. Refining Strategies: In 2025, I plan to review what worked and what didn’t in 2024. I’ll analyze my asset allocation, review my picks, and adjust for changing market conditions or new opportunities.

2. Broader Diversification: To manage risk better, I will focus on diversifying across asset classes, sectors, and geographies. In addition to stocks, bonds, or index funds, I’ll explore alternatives like real estate or commodities to balance my risk-reward profile.

3. Setting Realistic Goals: While doubling my money in a year is an ambitious goal, I’ll shift my focus to more achievable, short-term milestones. By aiming for consistent returns over time, I can make steady progress without the pressure of chasing unattainable targets.

4. Staying Calm in the Face of Volatility: One of the most important lessons I’ve learned in 2024 is to remain calm during market fluctuations. Emotional decision-making can lead to mistakes, like panic selling or overreaching with risky investments. Staying grounded and focused on my long-term goals will keep me on track.

Conclusion

Ultimately, investing is about the journey, not just the destination. My return of 6.95% in 2024 may not have been groundbreaking, but it was solid, and it was a step forward. I’m confident that with patience, discipline, and a thoughtful approach to investing, I’ll continue to make progress in the years ahead. There will always be ups and downs, but as long as I stay committed to the process, I believe I’ll achieve my long-term financial goals. Here’s to smarter investing in 2025 and beyond!