Return Question

notluck · #1 08-03-2006, 12:13 AM

This is my stock market activity in the last two years. I have learned a lot and as the price movements and times between sales demonstrates I moved away from being crazy. I am just curious to see if I calculated my returns correctly. Thank you guys for your help. Some of the sold value will not make sense due to commissions. According to my caculations i made 76% annualized return. More luck than anything else.

-Alex

Dazarath · #2 08-03-2006, 05:07 AM

Someone suggested the XIRR function in excel. It makes things a lot easier because you don't have to worry about when you buy/sell things. You just enter deposits and withdrawals.

notluck · #3 08-03-2006, 08:22 AM

That would not provide me with annualized return though. The problem I have not been able to find a formula to calculate portfolio return that is constantly growing through cash infusions. Granted my return is overstated because I do not take cash drag into account.

-Alex

notluck · #4 08-03-2006, 11:29 PM

Anyone? I know the picture above is wrong? Any advice, text book sugestions welcomed.

-Alex

buffett · #5 08-04-2006, 10:21 AM

[ QUOTE ]
That would not provide me with annualized return though.

[/ QUOTE ]
It wouldn't? I thought that's what an IRR does.

notluck · #6 08-04-2006, 09:15 PM

Using XIRR i get 29.8%, which makes sense. But how do you accuratly account for the timing of the dividends on stocks u have yet to sell? I guess i am trying to understand how the forumal works. And i am sad that it is an irrative process rather than one with a precise caculation.

thank you for your help