Investing 102

[Woody]

Originally Posted by 68SS2

I have a recently switched to focusing on this type of investing over the 401K plan I have been using since I got out of school 10yrs ago, so I appreciate the guidance.

I understand how to calculate my cost basis mathematically, but it just gets messy with auto div reinvestment over a dozen different stocks each month/quarter. I am doing as others have with keeping a running total with averages in excel. How do you keep track of your investments to know your cost basis is $41.63 per share?
Thanks

I know you asked Greg, but here is how I do it. I have a number of shares column, a price per share column and a total dollar amount column in a spreadsheet. The number of shares and total dollar amount columns are input manually. The price per share column has a formula which divides the total dollar amount by the number of shares. Every time I get a dividend or make a new purchase, I edit the number of shares and/or total dollar amount columns and the new cost basis per share is calculated.

You could also keep a running total by adding a new row for each new dividend or purchase and use a summation formula in the number of share and total dollar amount columns. Your price per share column would have an averaging formula.