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December 17th, 2017, 12:06 AM  #1 
Newbie Joined: Sep 2016 From: Florida Posts: 17 Thanks: 0  How do I find the Return on Investment of a stock I bought in 3 increments?
Let's say I bought 100 shares 43 days ago at 50/share. Then I bought 50 shares 35 days ago at 60/share. Then just bought 300 shares 2 days ago at 80/share. And it's now worth 85/share. How do I figure annualized ROI as one number? Last edited by farmerjohn1324; December 17th, 2017 at 12:10 AM. 
December 17th, 2017, 06:54 AM  #2 
Senior Member Joined: May 2016 From: USA Posts: 1,210 Thanks: 497 
The simple answer is that you can't. Return on investment measures the amount of gain on an investment. You are talking about three different investments. That answer, of course, is too simple to be correct. You can make up any definition you want and calculate a number. Whether that number makes any financial sense will depend on the definition. If I had to do it, I would probably calculate all three rates of return and then calculate a weighted mean using the different amounts invested as weights. 
December 17th, 2017, 07:03 AM  #3  
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 13,632 Thanks: 954  Quote:
If so (roughly speaking): you spent 32,000 you can sell for 38,250 over a year: 6250/32000 = .1953...~19.5% I ain't getting trapped with your "days"...I'll let Joppy do that  
December 17th, 2017, 10:39 AM  #4  
Newbie Joined: Sep 2016 From: Florida Posts: 17 Thanks: 0  Quote:
On this picture, the top number is the # of days since initial investment, and the bottom is the amount of money I put in at that time (the weight). How do I find the number (from 0  41) that is the answer when weighted?  
December 17th, 2017, 02:16 PM  #5  
Senior Member Joined: May 2016 From: USA Posts: 1,210 Thanks: 497  Quote:
 
December 17th, 2017, 04:24 PM  #6 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 13,632 Thanks: 954 
Or assume your 3 purchases were deposits in a savings account. The 1st one made Jan.1st. You know (apparently) what the yearend (Dec.31) value will be. Calculate the interest rate that results in that yearend value. 

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