Skip to main content

Posts

Demo how to use XIRR and XNPV functions of Google Sheets to calculate internal rate of return (IRR) and net present value (NPV) for a stock portfolio

Demo how to use XIRR and XNPV functions of Google Sheets to calculate internal rate of return (IRR) and net present value (NPV) for a stock portfolio

I have explained the idea of using Google Sheets functions to calculate internal rate of return (IRR) and net present value (NPV) for a stock portfolio . The process consists mainly of three steps: Identify cash flows from transactions managed in a Google Sheets spreadsheet Choose a discount rate based on personal preferences Apply XIRR and XNPV functions of Google Sheets In this post, I demonstrate step-by-step how to apply this process to calculate internal rate of return (IRR) and net present value (NPV) for a stock portfolio at 3 levels.
How to calculate the internal rate of return (IRR) and the net present value (NPV) of a stock portfolio with Google Sheets

How to calculate the internal rate of return (IRR) and the net present value (NPV) of a stock portfolio with Google Sheets

As a long-term investor, I need to know how to evaluate the performance of my stock portfolio. A simple return on investment calculation is not a good indicator for long-term investment because it does not take into account the holding duration, and cash flows involved during that period. A return on investment of 80% after 20 years is not as impressive as it sounds after 1 year. In this post, I explain the idea of using Google Sheets to calculate the internal rate of return (IRR) and the net present value (NPV) of a stock portfolio.
Create dividend income tracker with Google Data Studio

Create dividend income tracker with Google Data Studio

With transactions registered, it is easy to create a dividend income tracker with Google Sheets. However, a dividend income tracker in Google Sheets is not interactive. Instead of having different pivot tables and switching forth and back among them, I can create an interactive dividend income tracker with a single-page report on Google Data Studio. In this post, I explain how to create a dividend income tracker with Google Data Studio.
Time value of money, Present Value (PV), Future Value (FV), Net Present Value (NPV), Internal Rate of Return (IRR)

Time value of money, Present Value (PV), Future Value (FV), Net Present Value (NPV), Internal Rate of Return (IRR)

Why do I use my current money to invest in the stock market? Because I expect to have more money in the future. Why do I need more money in the future than now? Because of many reasons, the same amount of money will have less purchasing power than today. Therefore my investment needs to generate more money than today to protect my purchasing power in the future. That is the main concept of the time value of money where one dollar today is worth more than one dollar in the future.
Create a dividend income tracker with Google Sheets by simply using pivot tables

Create a dividend income tracker with Google Sheets by simply using pivot tables

As my investment strategy is to buy stocks that pay regular and stable dividends during a long-term period, I need to monitor my dividends income by stocks, by months, and by years, so that I can answer quickly and exactly the following questions: How much dividend did I receive on a given month and a given year? How much dividend did I receive for a given stock in a given year? Have a given stock's annual dividend per share kept increasing gradually over years? Have a given stock's annual dividend yield been stable over years? In this post, I explain how to create a dividend tracker for a stock investment portfolio with Google Sheets by simply using pivot tables.
Stock Correlation Analysis With Google Sheets

Stock Correlation Analysis With Google Sheets

Correlation is a statistical relationship that measures how related the movement of one variable is compared to another variable. For example, stock prices fluctuate over time and are correlated accordingly or inversely to one another. Understanding stock correlation and being able to perform analysis are very helpful in managing a stock portfolio investment. In this post, I explain in details how to perform correlation analysis among stocks in Google Sheets.
How to convert column index into letters with Google Apps Script

How to convert column index into letters with Google Apps Script

Although Google Sheets does not provide a ready-to-use function that takes a column index as an input and returns corresponding letters as output, we can still do the task by leveraging other built-in functions ADDRESS , REGEXEXTRACT , INDEX , SPLIT as shown in the post . However, in form of a formula, that solution is not applicable for scripting with Google Apps Script. In this post, we look at how to write a utility function with Google Apps Script that converts column index into corresponding letters.
How to convert column index into letters with Google Sheets

How to convert column index into letters with Google Sheets

In Google Sheets, rows are indexed numerically, starting from 1, but columns are indexed alphabetically, starting from A. Hence, it is pretty straightforward to work with rows and trickier to work with columns as we need to convert between column index and corresponding letters. For example, what are the letters of column 999th in Google Sheets? In this post, we will look at how to convert a column index into its corresponding letters by using the built-in functions of Google Sheets. What are letters of the column 999th in a spreadsheet? Unfortunately, Google Sheets does not provide a ready-to-use function that takes a column index as an input and returns corresponding letters as output. However, there is a little trick of combining other available built-in functions to do the task. In Google Sheets, there is the ADDRESS function that returns the cell reference, according to the specified row index (first parameter) and column index (second parameter) in the input. For example,
How to copy data in Google Sheets as HTML table

How to copy data in Google Sheets as HTML table

I often need to extract some sample data in Google Sheets and present it in my blog as an HTML table. However, when copying a selected range in Google Sheets and paste it outside the Google Sheets, I only get plain text. In this post, I explain how to copy data in Google Sheets as an HTML table by writing a small Apps Script program.
Compare stock portfolio to compound interest saving account

Compare stock portfolio to compound interest saving account

In investing, it is important to define the target that we want to achieve. Many investors like to compare their portfolios with a market index, but is outperforming the market index a good target? It is not a quantitative target to be measurable as market indexes fluctuate daily. I, personally, aim only for 10% growth a year. If at the end of the year, I see my portfolio grows 10%, I am pleased with that result no matter that S&P500 grows 50% the same year. To see if my stock portfolio grows in line with the 10% target, I choose to compare it to a saving account with the same interest. In this post, I will show you how to use a fictive saving account with daily compound interest as the target to benchmark a stock portfolio. Idea Computation Visualization Evolution of target saving account with 5% annual compound interest Evolution of target saving account with 10% annual compound interest Evolution of target saving account with 15% annual compound interest Conclusion