In microsoft.public.money, Matthew Fricke <Matthew
Fricke[at]discussions.microsoft.com> wrote:

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I checked again. I don't know how I got 100%. Perhaps I mis-typed at
the time. I tried the test again. I don't normally configure to use
the "%Gain" column. There are so many useful columns available in
the Portfolio, and for me "%Gain" is not one. But here are my
results.

The test: Buy 100 "Test Stock" at $10. Sell 99 "Test Stock" later at
$10.11:

Test in Money 2007. I get %gain = 1.10% with ShowClosedPositions
selected. I get %gain = 110.00% with ShowClosedPositions selected.

Retest in Money 2006: I get %gain = 1.10% which sounds reasonable.
This is both with ShowClosedPositions selected or not.

Retest in Money 2004: I get %gain = 1.10% which sounds reasonable.
This is both with ShowClosedPositions selected or not.

Test in Money 2000. I get %gain = 1.10% with ShowClosedPositions
selected. I get %gain = 110% with ShowClosedPositions selected.


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I concur.


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I tried the "xyz" example you gave in Money 2007 and got different results:

TR All = 1.1%
% gain = 110%

If % gain = (market_value - cost_basis + income)/cost_basis

we get

(1 share x $10.11=$10.11)-$10.00+(99*$0.11 cap gain=$10.89)/(1 share x
$10=$10.00) = 110%

For TR All it looks like

(1 shares x $10.11=$10.11 market value)-$1000+(99 shares x $0.11=10.89)+(99
shares * $10.00 return of capital)/(100 shares x $10=$1000.00) = 1.1%

I don't know how this works for the totals displayed for accounts or asset
classes. % gain tells me I have a 38% gain for my investment account while TR
says it is only 13.5%. I don't know which is accurate.

BTW TR gets completely messed up if there are actual Return of Capital
events (like with a Ginnie Mae or Freddie Mac) since it doesn't seem to
include the ROCs in its calculations.

Matthew

"Cal Learner-- MVP" wrote:

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In microsoft.public.money, Dan Orth wrote:

- quote -

% gain is "gain divided by cost basis" as a percentage.

TR all seems to be something like
((currentValue+amountReceived) / (amountSpent-amountReceived))-1
as a percentage. So if you are where you started, it would read 0%.
If you lost all of your money, it would be -100%

Buy 100 xyz at $10, and sell 99 xyz at $10.11.

TR All will show 1%, and %gain will show 100%.

If you have no sales, these should come out the same, I think.

I would say that TR All can be useful, but as a metric, Annual
Return and the various TR over different periods seem more useful to
me. I do not see a use for %gain.

Hello Everyone-
Could someone tell me the difference in money between % Gain and Total
Return All (TR all) and which one is more "accurate" for an overall idea of
how my portfolio is doing? Or perhaps just the math behind the calculations?
Thanks!
-Dan