Every Great Investor knows what it’s like to track your own “Performance.”
The process goes something like this:
- Pick excellent fundamental stocks.
- Build a concentrated portfolio of profitable stocks.
- Track the beats of every stock in your portfolio & watchlist.
- Add more of existing stock in bearish conditions.
- Rinse, Repeat.
What if I told you that this process is a waste of time? What if, your focus should be more on the bunch of stocks you have in your portfolio?
We’re in a Modern era of Investing. Everybody knows everything — how to pick a stock with high ROE or low debt or whatever technical terms. We all have screening tools which help us to find fundamental stocks — which are all ripped out and torn up.
What’s new in this?
Can you compete with the market by doing, what others are doing? Naah! You need to have something uncommon. Then only you can beat the market averages day by day, month by month & year by year.
And this is where most of the investor lose their momentum.
Just ask yourself a question – Can you outsmart the whole group of analysts sitting at the top of the building (of course, in a black suit) – discussing their future investing avenues? Can you?
Don’t know about you but I can’t outsmart them. They have enormous resources with extreme expertise. We retail Investors only have a simple portfolio with a bunch of stocks, some good, some bad & some are sitting for no reason.
Where does this leave us?
What should we do apart from filtering stocks?
How can we get our portfolio to perform?
Do analyzing stocks even matters?
Yes! I agree. We can’t beat Market Experts. But we can change the way we play the game.
The only thing you know that market experts don’t know is “Your Portfolio”. And this is where you can outsmart them.
Optimize your portfolio.
Let’s face it.
In this blog post, I’m gonna demonstrate My Personal Portfolio Management Tool created on GSheets and What kind of statistics I personally use to track my PF stocks.
I made my first announcement in Email Newsletter about this Portfolio Management Tool (PMT) and people were crazy:
This is something motivated me to write a descriptive explanation on PMT and maybe you’ll also get benefitted from the stats I use and this tool.
I had traded through many trading platforms. And was never satisfied with their tracking tools. They just show how much you had Invested, what is the Current valuation of your Portfolio and bunch of other simple stats.
For instance, just look at the Zerodha Kite Platform:
Simple & Minimal.
It just shows, how much you had invested and how much your stock valued at current market. Different is the P&L.
But what if – I want to know, how much returned I earned on the Cash infusion, not on the Invested Value?
Just imagine – for a sec – you had invested 2 lakhs of your savings (Cash Infusion) and turned them into 5 lakhs in just one year. Currently, you have that 5 lakh invested (Invested Value) in 12 stocks with an overall market pricing of 8 lakhs (Current Value).
What are your actual returns?
400% (calculation: 8/2). That is: (Current Value – Cash Infusion)
But what returns your trading platform will show you?
160% (calculation: 8/5). That is (Current Value – Invested Value)
That’s a big difference.
But remember, Numbers tells everything. More you are good at crunching numbers, more you can make sound decisions. All financial statements are interpreted in number.
So if your Cash Infusion based returns differs a lot with your Invested Value based returns then you may be a short term profitable trader whereas if they didn’t differ but shows a high return then this simply means that you’re a profitable long term investor.
And how much returns are realized (5 minus 2 lakhs) and how much are still unrealised (8 minus 5 lakhs)?
And what are the realized (or unrealised) profits of your partially sold stock?
But there’s no tool on this earth showing such type of statistics. Yeah, they may be useless for many Investors but the one who is damn serious about his/her investing career will absolutely mind these things. And if got a tool for all this calculation, Sone pe Suhaga.
You might be wondering, what these technical terms actually means? Don’t worry, I will explain them all.
Here’s some more thing which always pinned me a lot.
- What if – I want to know, how much returns I earned if I invested unequal amounts at unequal intervals?
- What if – I want to know, how much the stock changed after I sold them?
- What if – I want to know, how much profits are realized and how much are still unrealised?
- What if – I want to know, how much the stock has deviated from my target price?
- What if – I want to know, whether my portfolio beating the market average returns?
- What if – I want to know, how much overall cash I had generated since I’m investing?
No answers. Then how can we track them?
Here is my own Portfolio Management Tool. I started finding out a resource where I can infuse my ideas and there where I met GSheets. And Yeah! Google Search was also with me whenever I stuck somewhere.
This is how the homepage of my PF Tracking Tool looks like.
You can easily get basics with advanced information at Home.
What’s your PF today’s earning? Net earning?
How much idle Cash is there in your trading account? And Total Stock Holdings?
Most important, How much cash you had Invested? (denoted by “Cash” below the long orange Bar line)
& Cash Invested? + Realised Cash = “Invested”
“Invested” + Unrealised returns = “Current” (valuation based on CMP).
Overall Returns = “Cash” + Realised P&L + Unrealised P&L
And this thing is explained further in the G sheet if you scroll a bit:
These numbers are not calculated based on simple values. Instead unequal cash introduction at different intervals.
Too complex? Isn’t it? Anyway, you should be good at reading numbers. Numbers crunching is an integral part of Investing and Warren Buffett has that mind to conclude many things by just looking at the numbers.
As I said, your Portfolio is the only thing where you can outsmart all the Stock Market Experts ever exist. So know your Portfolio in and out.
These are tracking stats of your overall portfolio. You can also watch individual stock realized & unrealized P&L stats in the second sheet tab “Depth Analysis”.
There are total 2 spreadsheets, one for Display purpose and other for Input purpose.
I recommended not to share your Input sheet if you don’t want others to make changes in your PF. However, you can share your Display sheet with anyone, as it will be protected from external inputs.
Below are the 4 sub-sheets of Display Sheet.
It contains all the primary tracking stats in summarized form. This a “scroll up/down” sheet. The height of the sheet is 5 times of what is demonstrated in the first image (or featured image).
Stats regarding every individual stock. It is a “right/left scroll” sheet. You should consider seeing this in the demo link at the end of this page.
It contains many heads like: Name, Ticker, buy & sell info, partial selling mark, cap stock, target deviation, after sell change, % of PF etc.
It shows how cash is moving in your Portfolio. It also shows how much Cash is generated by you throughout your investing life.
Additionally, it shows you some more stats which are useful to calculate the XIRR returns. Look.
Total Cash generation is just the difference between Invested Value and Cash infusion.
This contains stock in the watchlist and related specific stats. You can also set the price triggers, based on which you’ll receive BUY remarks.
Update: Above images is showing the mixture of both sheets. However, we had divided it into 2 sheets (Display & Input) to protect your information.
I would like to introduce some more additional and excellent feature:
After Sell Change.
I always keep x% of my Portfolio for trading purpose. So sometimes, I even sell a stock just because of a high probability of that the xyz stock is going to be tumble down in near short term future, despite having an excellent long-term underlying value.
Like ICICI Bank, due to demonetization, the banking sector was hit hard as people are not applying for loan and that’s something which contributes a substantial part of bread & butter of any banking company.
So the prices of ICICI bank (the only banking stock, I’m tracking since a long time), tumbled a lot. I liquidate some of my holdings in ICICI bank considering to accumulating more at much lower prices.
But due to a high amount of cash deposit and digitalisation, ICICI bank’s long-term underlying value remain intact so as per my analysis, it will definitely go beyond 320 in a span of 1 year (don’t consider it as a stock tip, just try to get my point).
That’s only one stock, I’m talking about. There are even dozens of stock which go through the same process. Then How will I track them all?
This problem is fully eradicated from this After Sell Change Stats. Look.
Look at the After Sell Change of ICICI bank, it’s 5.25% down. I may have a target of 10% or whatever. But there are many stocks which are going down since they were sold. So we can consider buying the stake in that companies.
And the most important thing is that you don’t need to give much time & effort to analyze these stocks as I’m assuming that you already did that when you bought it for the first time.
But this also goes in opposite direction, like you can see Tata Steel hiked up after the sell, so I’ll simply stay away from this and target other more undervalued stocks.
Note: Above G Sheet demonstration is just a Demo Image of PMT, don’t consider it as a Stock Advice.
Holding – Sold – Hold/Sold
This simple shows that whether you had liquidated all of your stock holdings or only partial holdings or nothing.
Suppose, I bought 1000 shares of ICICI then the PF tool will show “Holding”.
But later on, I need some money so I sold 600 shares, so now the Tool will show “Hold/Sold”
And at last, if I even sold the remaining 400 stocks then it will show “Sold” mark.
Have a look.
This can affect your decision of which stock to liquidate at the time you need some cash. I’ll prefer less to sell any of the stock with purple color above as compared to “Holding” one, keeping all other things constant.
And you can also set target price selling trigger so that you’ll see a color change in the specific column (as shown below).
You can set the selling triggers. The outcomes you’ll see is the deviation from your target and a purple remark of “SELL” based on your price inputs and LTP.
You can even change the target price based on your day to day analysis.
Around 15% of the traffic on this blog are Non-Indians. And Guess what? This tool support global stock exchange so if you want to track Apple, Google or any of your favorite stocks, simply put the ticker symbol and you’re all set.
I found that many of you had never confronted such kind of PF tool so it would be hard to digest the whole thing in one go. So we had created a dedicated small team of support who will take care of your doubts (once you become the paid user of the service).
You can Email or Comment and even Chat.
Commenting inside your tool would be the best options. For example: you have any query with reference to any certain column, row, range or specific cell then “right click” and “add a comment”.
We will get notified about your comment query. Eventually, we will revert back with the solution within 24 hours.
Look. Select the block >>> right click >>> Insert comment.
It will create a pop (adjacent to the range, cell, column or row). Just shoot a comment.
You can mark the query resolve, if satisfied, or else re-comment again till you get your query solved. And yes! you can access all the past discussion too.
So you don’t need to worry about whether you’ll understand the product after paying for it. We will always stand by your side.
You can see the demo of the tool with live data flowing inside the sheet.
Here it is: Demo User PMT (Display)
And don’t forget to visit our Dedicated page for this tool: Portfolio Management Tool.
This PMT represents many, many hours of time and research for me. As such, I feel compensation is appropriate so I have a very minimal pricing plan. I’ve worked hard to make this process very unobtrusive to you, my readers.
We are hiring! We have extreme future plans for this tool so we are looking for some outsourced expertise to make this Tool more provoking.