Re: OOP basis (end)

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In Reply to: OOP basis (end) posted by Jamie R. on February 01, 2006 at 20:47:19:

: OK, I think I am a little confused. I have a custom report with the following columns:

: OOP basis (end)
: Reiv dist (btw)
: Gain (end)
: End Value

: Really what I want to see is the comparison of what I have invetsed with what the current value is, and a quick glance of the source of the increase, or unfortunately any decrease.

: Here is what does not make sense to me.

: OOP basis (end) Reiv dist (btw) Gain (end) End Value
: Conagra (CAG) 13,139.63 1,987.01 -513.32 12626.31

: How could I have invested over $13k, received almost $2k in dividends, had a slight decrease in gain and the end value be less than what I have invested???

: Not a wizard at investing, but something seems wrong.

: Thanks
: Jamie

Hi Jamie,

I think you had a small typo, it should be "Reinv dist", not "Reiv dist"? Is this correct?

Reinvested distributions are not received by you. They were paid out, but then reinvested into the fund or stock. In this example, you have paid out of pocket $13,139.63, and CAG is now only worth $12,626.31, thus a loss of $513.32.

$13,139.63 - 512.32 = 12,626.31

Reinvested distributions do not affect your "out of pocket" cost, as they didn't change how much money has come out of your pocket. On the other hand, "Distributed" distributions do affect your out of pocket cost, as they will reduce the amount of money that has come out of your pocket.

Thanks,
Mark
--
Mark Beiley
Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP/2003

Replies:

• Re: OOP basis (end) J. Reece 20:03:19 02/06/06 (1)
  • Re: OOP basis (end) Mark 21:56:55 02/07/06 (0)