tag:blogger.com,1999:blog-28021668.post7425962187052240955..comments2023-10-12T21:12:41.408+08:00Comments on Value Investment - Musicwhiz's Journey: Musicwhizhttp://www.blogger.com/profile/10950754156386935254noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-28021668.post-22724830535849355292007-12-06T23:13:00.000+08:002007-12-06T23:13:00.000+08:00Musicwhiz, Good write-up & reminder for me. I los...Musicwhiz, Good write-up & reminder for me. <BR/><BR/>I lost SO MUCH money by buying and HOLDING junk stocks (held since 2000). eg. Creative, popular.. you name it at 2000 -- all time high. :) <BR/><BR/>Its a heavy price to pay when one does not know the difference between speculation and investment.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-28021668.post-8185729499152746352007-12-06T01:47:00.000+08:002007-12-06T01:47:00.000+08:00thks MW, for your prompt reply. I'll digest what y...thks MW, for your prompt reply. I'll digest what you said and get back to you if I still have doubts :)la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-90045978137397724512007-12-06T00:19:00.000+08:002007-12-06T00:19:00.000+08:00Hi la papillion,It will depend on whether you are ...Hi la papillion,<BR/><BR/>It will depend on whether you are talking about unrealized gains/losses as a % of your current portofolio cost or if you are looking at realized gains.<BR/><BR/>For me, I treat realized gains as a separate component and disclose it as a dollar value. For my current portfolio (of which I am still vested in), I use unrealized capital gains or losses divided by current total cost of investments. Dividends and realized gains/losses are a separate figure for easy referencing.<BR/><BR/>If you sell a stock and make a profit, then it increases your realized gains. I will take the TOTAL cost of ALL investments made to date and compute my realized + unrealized gain or loss to date as a total % of my invested capital since Day One of my investing journey. This is around 35% to date or about 11+% per annum (since I have been investing for 3 years). I do not disclose this figure in my portfolio review though.<BR/><BR/>Some people like to use dividends to reduce their cost of investment, but I think it is not too accurate for me as I would always like to compare my capital gains against the base purchase price, irrespective of dividends received over a period of time.<BR/><BR/>Regards, MusicwhizMusicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-78071007616776735132007-12-05T22:48:00.000+08:002007-12-05T22:48:00.000+08:00Hi MW,Wanted to ask you a basic question. How do y...Hi MW,<BR/><BR/>Wanted to ask you a basic question. How do you calculate your portfolio returns? <BR/><BR/>I'm a bit confused, here's my questions:<BR/><BR/>1. Portfolio returns (%) = (unrealised capital gains or losses + total dividend received + realised gains or losses)/(current total cost of investments) ?<BR/><BR/>Is that how it is calculated?<BR/><BR/>2. What happens if I sell off a stock and made a profit? This is the confusing bit. Do I reduce my unrealised gains and increase my realised gains, then reduce my total cost of investments?<BR/><BR/>Thks in advance for answering. I'm really confused cos I only noe how to calculate my individual stock returns.la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.com