Advanced report rate of return

[Stefano M Canta]

Hello,

You can do the transaction buy selling 3000-USD worth of stock A, and use
the cash in the brokerage account to buy stock B.
Or, which is equivalent, move 3000-USD worth of stock A (which will be
3000/3100 of the amount of shares I have) to stock B. It's the same
operation.
What I am saying is that the 3000 USD never left the brokerage, but they
are just rebalanced between investments.
The total money in column should take into account the money that goes in
the brokerage account, not the sum of the money that goes into each stock
separately.


-----

Stefano Mihai Canta, Ph.D.
Electrical Engineering Specialist
Antenna Subsystem Operations

Space Systems/Loral
3825 Fabian Way M/S G-43
Palo Alto, CA 94303-4604
Tel  1-650-852-5808
Fax 1-650-308-1808


On Mon, May 13, 2013 at 12:17 PM, Derek Atkins <derek at ihtfp.com> wrote:

> Hi,
>
> On Mon, May 13, 2013 2:56 pm, Stefano M Canta wrote:
> > Hello,
> >
> > What about this bug in the advanced report?
> > Suppose I invest 3000 USD in stock A and get 100$ in gain.
> > I then transfer an equivalent amount of shares of A for 3000 USD to stock
> > B, under the same brokerage.
> >
> > Now the money in column shows 6000$ and the rate of return is 100/6000 =
> > 1.6%. Instead, the money in column should only show 3000$, because that
> is
> > the money that was invested in the brokerage, with a return of 100/3000 =
> > 3.3%.
> >
> > Is that correct?
>
> My guess is that your transaction transferring from A to B is what's
> causing your issue.  You say "transfer an equivalent amount of shares of A
> for 3000 USD to stock B", what exactly do you mean?  And what does the
> transaction look like?  My guess is that that transaction is what's making
> the report appear like it is.  So no, I don't think it's a bug in the
> report.
>
> > Please remember to CC this list on all your replies.
> > You can do this by using Reply-To-List or Reply-All.
>
> -derek
>
> --
>        Derek Atkins                 617-623-3745
>        derek at ihtfp.com             www.ihtfp.com
>        Computer and Internet Security Consultant
>
>