Hypothetical PM Spreadsheet Question.....

[Danny-boy]

Hi all,

I'm interested in people's view on this one, what would you do?

Let's say you have a spreadsheet showing all your PM's, and you buy a new coin.

You buy coin A for £100. To buy coin A, you sold coin B for £100 cash. But your spreadsheet tells you that you bought coin B two years ago for £50.

Do you enter new coin A on your spreadsheet as costing £50 or £100?

If you put it down as £100, you don't take account in your spreadsheet of the profit you made on coin B.

What would you do?

[mr-dead]

Enter coin A at full price then enter a profit entry of -50 that will lower your overall cost average.

[HighlandTiger]

Coin A entry would be £100,  On coin B, the one you sold I would put a -£50. So the difference to the total on your spreadsheet would be £100-£50=£50. Which is the actual cost of coin A

[Danny-boy]

Sounds sensible guys, I don't want coins I don't have on my spreadsheet, but entering a profit as a general item is a good plan.

Cheers

[Shamatti]

Hi all,

I'm interested in people's view on this one, what would you do?

Let's say you have a spreadsheet showing all your PM's, and you buy a new coin.

You buy coin A for £100. To buy coin A, you sold coin B for £100 cash. But your spreadsheet tells you that you bought coin B two years ago for £50.

Do you enter new coin A on your spreadsheet as costing £50 or £100?

If you put it down as £100, you don't take account in your spreadsheet of the profit you made on coin B.

What would you do?

 

 

 

The obvious answer is to mark coin B as sold and not delete it, leaving the £50 profit there. After all, you did pay £100 for A. If you mark it a £50 in 5 years you will have forgotten about all this and when you sell it for £200 you will show £150 profit where there should only be £100! You are concentrating your profits into a single coin. If you sold 2 coins, each for a profit, and then spent that on a third, then you would have concentrated those profits into a single coin, see?

 

Do you have 1 column for value and a second one for price paid? Add a column for price sold and/or profit made? (Just profit would be my choice)

 

Just mark that coin as sold, and enter the profit you made. Remove it from any equations by adding an if statement to them (If profit is not null then..... etc etc) Sort of kills 2 birds with one stone. You could also set excel to not display any sold coins when you open your sheet for general viewing. This would stop it from being cluttered with old coins you no longer have. Plus it will help you remember which coins you did well on, and which you did less well on in years to come.

 

By doing it this way as soon as you enter the profit made on the coin, it will be removed from your totals and also from your standard view of the spreadsheet. But you will always have a record of the profit you made, and each coin is correct for actual price paid (Does it mater you sold a coin to buy it? What if you sold a kidney for example? lol you wouldn't enter that!)

 

That's what I'd do.

[Lea79]

I just write it all in a little book I'm old school all the way

[Danny-boy]

I just write it all in a little book I'm old school all the way [emoji2].

Lol.