club_cafe: Re: Re: Calculating Total and Average Return on Investment
Jim,
I did the XIRR calculation and it looks like it is working. I am getting a #NUM in the blank when there is a negative return. Is there a way to get a negative return ( an actual negative number) when you use this calculation? My numbers do not always match with Bivio, but it is explainable now. For those stocks purchased after we started with Bivio they match. Bivio has only a starting value in the calculation on the date we transferred our records with them, so they do not have the actual history of the stock purchase in their calculation. That is why the return in Bivio is incorrect for the history of our stocks. That is why I wanted to calculate it myself. Now I feel better about understanding our actual rate of return on the stocks we own. Thank you once again for helping me out with this.
Sharon Get McAfee virus scanning and cleaning of incoming attachments. Get Hotmail Extra Storage!
Sharon,
> I did the XIRR calculation and it looks like it is working. I am getting a #NUM in the blank when there is a negative return. Is there a way to get a negative return ( an actual negative number) when you use this calculation? <
Yes, XIRR will return a negative number if the return is
negative (you got back less money than you invested).
If you're getting #NUM, the most likely cause is probably
that all your cash flows are the same sign. The usual
convention is that investments (or stock purchases) are
entered as negative values (money going out of your pocket)
and withdrawals (or stock sales) are entered as positive
values (money going back into your pocket). Also, the first
date in the list must be the earliest date.
> Bivio has only a starting value in the calculation on the date we transferred our records with them, so they do not have the actual history of the stock purchase in their calculation. That is why the return in Bivio is incorrect for the history of our stocks. <
Is the amount of history too much to be worth the trouble of
entering it? What software (if any) did you use before
switching to Bivio?
-Jim Thomas
> I did the XIRR calculation and it looks like it is working. I am getting a #NUM in the blank when there is a negative return. Is there a way to get a negative return ( an actual negative number) when you use this calculation? <
Yes, XIRR will return a negative number if the return is
negative (you got back less money than you invested).
If you're getting #NUM, the most likely cause is probably
that all your cash flows are the same sign. The usual
convention is that investments (or stock purchases) are
entered as negative values (money going out of your pocket)
and withdrawals (or stock sales) are entered as positive
values (money going back into your pocket). Also, the first
date in the list must be the earliest date.
> Bivio has only a starting value in the calculation on the date we transferred our records with them, so they do not have the actual history of the stock purchase in their calculation. That is why the return in Bivio is incorrect for the history of our stocks. <
Is the amount of history too much to be worth the trouble of
entering it? What software (if any) did you use before
switching to Bivio?
-Jim Thomas