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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (2763)	6/19/1999 10:51:00 AM
From: Uncle Frank	Read Replies (3) \| Respond to of 54805

>> What i find amazing about your success is that you have done it without options trading. Let me rephrase your comment, t2k: The reason* for your success is that you did it without options trading* <g>. >>I am on the verge of getting away from the markets myself (the wife is threatening me). As someone who has known you since your first post I have one thing to say - *PHOOEY!* Just like you renounced options. <LOL> You (we) are going to have such a good July with Mr. Softee that you'll be too busy trading the August series to take more than a long weekend. Just keep increasing your net worth and your long suffering wife may tolerate you. Frank

To: t2 who wrote (2763)	6/19/1999 10:53:00 AM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Lindy and all, Two people have already done a good job of determining Lindy's rate of return. All of us had to make some assumptions, not having the intricate details of his overwhelming success. I won't be adding anything other than the details upon which I based my calculation and the spreadsheet method of calculation for those who want to learn it. For those who don't know how to calculate rates of return in a spreadsheet, this little missive will show how EASY it is to do. List the dates that money is taken out of or added to a portfolio in one column. Make sure the column with the dates is set to a date format. In another column show the cash flow. Use negative numbers for cash flow out of pocket (money you put in the portfoliio) and positive numbers for cash flow in your pocket (money you take out of the portfolio). At the bottom of the column containing the dates, list today's date using the "TODAY" function. (Using the "today" function makes the date change automatically on a daily basis.) At the bottom of the column containing the cash flow values, place the currnet value of your portfolio using a posistive number. (From a cash flow perspective, the positive number assumes you liquidate your portfolio and put the cash in your pocket.) Place the "XIRR" formula anywhere in your spreadsheet. You'll need to use the manual to learn how to list the paramaters. For Microsoft Excel it will read as follows using the example below: =XIRR(B1:B6,A1:A6) Column A Column B Row 1 Dec 1, 1992 -17000 Row 2 Jun 1, 1994 -2000 Row 3 Jun 1, 1995 -12300 Row 4 Jun 1, 1996 -17000 Row 5 Jun 1, 1997 -15000 Row 6 Jun 1, 1999 -850 Row 7 June 19, 1999 1000000 (Value Today) In Lindy's case, using the above paramaters, the XIRR formula shows that his annual rate of return is a whopping 76.31%. Way to go, Lindy! You can list as many dates and amounts of withdrawals and additions to your portfolio as you want. (I suggest using more additions than withdrawals. Tee hee. :) Some years you may add to your portfolio every month. Some months you might add to your portfolio two or three times. It really doesn't matter. Just set up your spreadsheet and you're off and running. To appreciate how you're really doing, compare it with the annual rate of return of the S&P 500 over the same period of time. Hope this helps! --Mike Buckley