A better way to analyse my returns.

benbay001

I currently have an Iweb S&S ISA, which charges a low commission, but is rather bare bones when it comes to returns analytics.

My investments currently are all in individual companies and i imagine it will remain that way for many years.

I web currently only show me my total return as a percentage of my average purchase cost.
Where this falls short is if i buy 1 share of company "A" in month 1 for £10 per share another share in month 2 for £9 and another in month 5 for £6.
If in month 12 the company is now trading again at £10 per share, my iweb account will say i am 20% up.

I would like to some how view this on an anualised basis as of the 3 shares i would now hold, only one would have been held for the full year. (So i guess i would have to calculate the anualised gain of each purchase and average it out?)

Sorry if my question is confusing.
I began doing a spread sheet with all the calculation a while ago but it became very messy and i gave up.

TLDR = I am looking for a tool to help me work out my anualised gains on individual stocks where the average cost of purchase maybe an average of a share bought yesterday and another bought 2 years ago.

Thanks

Tom99

I would use the 'goal seek' function or whatever the excel equivalent is.

benbay001

Thank you.
Id never heard of it.

Prism

I use the XIRR function in Excel

dales1

Yes, that is the way. XIRR.
(Bowlhead said that XIRR is preferable to Unitisation (per Monevator) and I think that is true).

Dales

Tom99

Prism wrote: »

I use the XIRR function in Excel

Here is an example:
https://ibb.co/fdJFvmH

ffacoffipawb

Prism wrote: »

I use the XIRR function in Excel

Care needed with this function as it can have more than one solution, only one if which is obviously correct.

Tom99

ffacoffipawb wrote: »

Care needed with this function as it can have more than one solution, only one if which is obviously correct.

Would that only be the case where you have sells as well as buys in the list?

coyrls

dales1 wrote: »

(Bowlhead said that XIRR is preferable to Unitisation (per Monevator) and I think that is true).

You can do both; they answer different questions.

bowlhead99

coyrls wrote: »

You can do both; they answer different questions.

Yes, they would be used for different purposes.

The 'bowlhead said' probably relates to an explanation I gave earlier this year on this thread: https://forums.moneysavingexpert.com/discussion/comment/75951423#Comment_75951423

ffacoffipawb

Tom99 wrote: »

Would that only be the case where you have sells as well as buys in the list?

Multiple buys and sells can have multiple solutions for the internal rate of return.

Potentially for every change of cashflow sign, there is another XIRR solution.

EDIT: See example https://www.sumproduct.com/thought/irreverent-irr



https://sumproduct-4634.kxcdn.com/fileadmin/_processed_/8/3/csm_Image-08-Multiple-Solutions_9796bb83e8.gif