How to Manually Compute Stock Portfolio's Performance

Computing the performance of your stock portfolio is an important task for any investor. It helps you track your progress, identify strengths and weaknesses in your investments, and make informed decisions about your financial future.

Here are some steps you can follow to compute your portfolio performance:

1. Gather your data: In order to compute your portfolio performance, you'll need to have a list of all the stocks you own, along with the number of shares and the purchase price for each. You'll also need to have a record of all the dividends you've received and any fees or commissions you've paid.
2. Calculate your returns: To compute your returns, you'll need to know the current value of each of your stocks. You can find this information by looking up the current market price for each stock. Once you have the current value, subtract the purchase price from the current value to find the profit or loss for each stock.
3. Determine your overall portfolio performance: To find your overall portfolio performance, you'll need to add up the returns for each of your stocks and take into account any dividends or other income you've received. You can then calculate your overall return by dividing the total return by your original investment.
4. Compare your performance to benchmarks: It can be helpful to compare your portfolio performance to benchmarks such as the S&P 500 or the performance of similar portfolios. This can give you a sense of how your portfolio is performing relative to the broader market or to other investors with similar goals.
5. Review and adjust your portfolio: Once you have a sense of your portfolio performance, take some time to review your investments and consider whether any changes might be necessary. This could include selling off underperforming stocks, rebalancing your portfolio to maintain your desired asset allocation, or adding new investments to diversify your holdings.

Computing your stock portfolio performance is an ongoing process that requires regular monitoring and review. By staying on top of your investments and making informed decisions, you can help ensure that your portfolio is well positioned to meet your financial goals.