Return on Investment

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Joined: Fri Apr 17, 2015 3:07 pm

Return on Investment

Post by sam.thode » Sun May 13, 2018 2:29 pm

I'm trying to compare some stock purchases to an index, and I'm having a hard time figuring out the best way to calculate the return.

I've settled on calculating the return on investment by comparing the value of the purchased stock to the value of an index purchased over the same time period, ie, return of $100 of Stock A bought on Jan 1 2018, compared to the return of $100 of an Index Fund on Jan 1 2018. I think this simplifies trying to account for holdings that are less than a year.

The part I'm stuck on is calculating the return of the lots. I saw this example

Code: Select all

Date    Amount   Shares   Price    Sold    Price   Amount   Gain/loss
7/1/05  10000.00 500.000  20.00
2/1/06  10000.00 400.000  25.00    2/1/08  23.00   9200.00  (800.00)
from here:

and tried to follow it, but I don't know how to properly account for the brokerage fee if I sold multiple lots at once. There is one brokerage fee for the sale, but I have two lots to account for. If I'm following the example above, I don't know how to calculate the cost basis. Is this even the correct approach to do this?

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