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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: Berney who wrote (1015)	11/22/1998 5:44:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 1722

Berney, Congratulations on an outstanding year!!!! I have a thought about your portfolio performance measurement technique. The way you are doing it, the stock prices have an effect on the result. Here's an example. INTEL INTC 80.25 112.06 39.64% ROBBINS & MYERS RBN 39.50 20.00 -49.37% Intel contributed +32 and Robbins and Meyers contributed -19.5. The net is a +12.5. On an equally weighted basis the net would be negative. This is not a criticism of the technique because that's exactly how the DOW works and you would have outperformed no matter what. I have just found it more useful to measure my portfolio performance in other ways also. One is to equally weight each stock and measure the performance of the net vs. the S&P500. The second is to use a unit value that weighs each stock according to the size in dollars in takes up in the portfolio. This includes existing and new cash put in. I think a combination of all three methods give you the best idea of how you are doing. Let's say for example you put Berkshire Hathaway in your portfolio next year. Let's say it dropped from 67000 to 50000. That move would certainly wipe out all the gains from what might be an otherwise super year if all other stocks in the portfolio were up 100%. (assuming you had similar amounts invested in the others) On a weighted basis or investment value basis the measurement would be more meaningful whether it's your portfolio or a study of some kind. Just something to consider that might be helpful. Wayne

To: Berney who wrote (1015)	11/22/1998 5:45:00 PM
From: Freedom Fighter	Read Replies (2) \| Respond to of 1722

Return on Equity forbes.com

To: Berney who wrote (1015)	11/25/1998 6:48:00 AM
From: porcupine --''''>	Read Replies (1) \| Respond to of 1722

Berney: Congratulations on continued outstanding results. A year ago, your portfolio leaped ahead of the Index coming out of the gate, and never looked back. A couple of queries: As to the methodology of model portfolio tracking generally, a question I have is: Should the post-merger performance of D.R. Hutton be calculated as part of portfolio performance, as it is D.R Hutton shares that a holder of this portfolio would wind up owning? Or, should the Continental Shares be deemed to have been sold for cash and reinvested pro rata in the portfolio's other components, at their respective closing prices on the day of the merger? And, just out of curiosity, how did your portfolios do during the recent virtual bear market? porc --''''>