Why would I want another investment portfolio tracking tool? Why would one portfolio tracker be any different from the other, and what’s wrong with just using the free tool provided by my broker?
Many think of investing as a simple buy-and-sell process. You buy a security and sell it later at a higher price. Hence, you wouldn’t need much of a calculation to figure out the return on two simple transactions, would you? Just take the percent change from the buy and sell price.
Now consider the following, much more realistic scenario:
Instead of two simple transactions, this investment now involves nine. Now, what is your average cost for the number of shares you sold at transaction 5 and 9? What is the yield on your cost and not the current market price? What is your total return given the dividend received? Because you injected additional capital to your portfolio at transaction 7, what is the money-weighted return? How much of your return have you realized until transaction 8?
I simply couldn’t find an appropriate transaction-based portfolio tracker out there that could handle these kinds of questions. So I decided to create one myself.
I wanted four things out of the tool I was set to create:
I believe the Portfolio Tracker accomplishes these objectives very clearly. All you have to do is enter any transaction and incoming/outgoing cash flow to your portfolio and the rest is up to the Portfolio Tracker.
As a bonus, I have added our Decision Log template in the Portfolio Tracker. You simply fill out the Decision Log and click ‘print’ to either print or save a copy of your decision. This is a very powerful tool to track your decisions and improve your thinking.
I hope you will find the Portfolio Tracker as useful as we do. If you find any errors, problems, or have any tips for improvement, please write to me at firstname.lastname@example.org. I would love your feedback.