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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Richard Habib who wrote (34026)	11/5/1999 1:39:00 PM
From: JH	Read Replies (2) \| Respond to of 93625

Congratulations, well done! But I guess it's difficult to make an "apples-to-apples" comparison when you exclude the cash portion of your portfolio. For example, if someone started the year with $100,000 but decided to make only one trade during the year on which they doubled a $10k bet to $20k, the portfolio would be worth $120k today (excluding interest). That would result in a 20% gain on the portfolio year-to-date, and not "100% return" on "closed positions". My conclusion is that not many people track the performance on their portfolio in the same way that mutual funds or hedge funds do. Both types of funds usually hold low levels of cash and aspire to stay fully invested. In calculating total return, the cash component SHOULD be considered part of the portfolio, though it tends to drag down return during a bull market.