That’s correct, but which performance would you expect when you put a share in for 0€ and the share makes the same performance over 2 years from 100€ to 200€?
Hint: you don’t know the 100€, because you entered it for 0€. To make you think about it: Please provide us your calculation.
Your situation is pretty common and well known.
Technically, your view on things is perfectly fine. The issue differ from your personal view.
PP is an analyzing tool based on performance purely.
That’s why PP can’t handle “free”,“gifted”, “inherited” “etc” they why most people like to look on things.
Naturally we understand you like to know, what’s your invest, and what’s a different one.
But PP doesn’t offer this possibly in a native way. Performance doesn’t care where the money or a security is coming from.
With workarounds, you can still achieve what you are looking for, but that’s not a beginner task, since there is no flag which says “gifted or what ever”.
Thanks both of you for your time on this topic.
@Jo92 : i don’t think it should be entered at 0. Ideally it would be tied to the initial buy transaction (to reduce the Purchase Value).
I’m not sure about your point. If in 2020 i had 10 shares bought for 100€, and in 2022 i have 20 shares and the price per share raised by 100% (ie. now 20€ per share) then the performance on this period would be : gain(400€-100€) / invested(100€) = +300% perf
@Sn1kk3r5 : i do agree with the position that 0 value share can’t enter by themselves on the perf calculation (can’t divide by 0). If you have workarounds i’m willing to test those to see how it is presented
How would you model this case in PP then ? Choice dividend as documented in how to ? or just inbound delivery ? Or a sale of the 10 stock and a buy of 20 stock at half the per share price ? Im kinda lost on how to reflect this situation in PP but really appreciate the help !
That makes no sense at all for me. Imaging your’re buying 1 Stock for 100€, now the value is 150€ and you get one “gifted”. Is your purchase value now -50€?
Exactly like this! Inbound delivery with the actual value. I think you’re stuck in mixing your “personal” performance with the performance from the security itself. That’s an error many of us are doing at the beginning. Where the money comes from is unimportant, somebody paid it (even if he paid it to gift it to you).
I bought 1 stock for 100€ and got one gifted stock. So the purchase value is 50€ (maybe its the wrong vocabulary here). Without consideration of the fee/tax thats the average cost of each stock. Which i then use (on my spreadsheet) to calculate the capital gain & the overall performance of the given position. Does that makes sense ?
What if in what i consider a similar scenario, i would get a 50% discount for the shares i buy ? In that case i would have a buy transaction of 100€ and 2 shares (although the actual cotation is 100€). PP would calculate a 100% performance then. Is that completely biased ?
Sorry for being persistant but i try to understand properly the concept of personal finances & how each tool is implemented 