Forum Archive Index - September 2000

[Mike Hudson <MHudson@placemakers.co.nz>]

Snoopy wrote

"Yes you can have it both ways. I bought some RBD at 80c a couple of years
back. By your logic Mike I would be making 20% or so on those shares now
just in dividends. I'm not though. I am making 12% like everyone other RBD
shareholder. That is why when you look in the paper they are able to publish
a *single* yield figure. The price you bought the shares at is irrelevant"

I wish I had never got into this discussion now; it's analogous to those
arguments about how many angels can dance on the head of a pin.

If you value your investments at cost taking no account of unrealised gains
or losses, then you are indeed making a return of 20% on your original
investment. If you revalue your share to its current market value you are
making 12% per annum (or whatever its current gross yield is) plus you have
booked a capital gain of 40 cents. It's all a matter of preference really.
Personally I revalue my portfolio to market value on a daily basis and
account for "profits" and "losses" as they occur whether realised of
unrealised. 

Perhaps as editor Ben should declare this discussion closed.

Cheers
Mike H
  



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