tag:blogger.com,1999:blog-7004453.post8978885117615440493..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: How to be a better investor – evaluating performanceRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7004453.post-41738001627992624912007-05-15T06:48:00.000+05:302007-05-15T06:48:00.000+05:30yes, when you add cash and have gains on it, it in...yes, when you add cash and have gains on it, it inflates the returns and vice-versa.<BR/>on second question, i consider the value of the portfolio. that includes the realized and unrealized gains.<BR/>i am not sure what you mean by booking profits as they might never happen ... i sell a stock only if the price is above the intrinsic or something is wrong with the fundamentals. so it doesnt matter if the profits are booked or unrealized. if your analysis is good, then selling should happen based on multiple factors in addition to the paper profitsRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-13129741012219078382007-05-15T05:53:00.000+05:302007-05-15T05:53:00.000+05:30Also, at the end of evalutation period will the va...Also, at the end of evalutation period will the value of the portfolio include paper profits as well? because unless you book these profits they might never happen.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-88032224139204720472007-05-15T05:34:00.000+05:302007-05-15T05:34:00.000+05:30Thanks Rohit for sharing your views on evaluating ...Thanks Rohit for sharing your views on evaluating one's performance. I have a question though on the formula, as you are just deducting the "Cash added/removed" part. Now if you are looking at a period of a month then this should be fine, but for a 1 year period cash added/removed in say the middle of the year might change the annual return figures drastically. any views on that?Anonymousnoreply@blogger.com