The Greenbackd Portfolio is a theoretical portfolio that makes the following assumptions:

1. We can trade at the closing price (or, if there’s after-hours trading, the last price) for each purchase and sale for each stock.

2. Each stock is equally weighted in the portfolio.

3. We aren’t subject to brokerage or taxes.

4. We don’t hold cash and we have unlimited buying power.

Obviously, none of these assumptions apply in the real world, as much as we wish that they did (especially the one about unlimited buying power).

G

Yet, you count the absolute return as if it is the return on the portfolio… What you’re really measuring, like you said, is the average absolute and relative performance of each of your positions. Your average position returned 29.2% during the quarter. It is not really a measure of how the portfolio would have performed. The portfolio may have performed under/over this amount (depending upon a variety of factors). What if you had cash on the sideline, which you realistically would have had since you bought/sold a number of stocks during the quarter?

How are you measuring your performance YTD? That could be under/over stated as well.

Anyways, I’m not trying to be a stickler or annoying. I hope I don’t come across that way.

Thanks for all your hard work – I enjoy your blog!