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The RV (Relative Value) will be yellow if the RV is less than 80
percent or higher than 150%.
·
% Compounded Annual Rate of Return (Total Return) will be
yellow if it falls below 10%.
The date when the stock price was last updated will be in red if it is
more than seven days old.
View the Big Picture
Each company should be viewed in the context of the entire portfolio,
for slight downturns in quarterly performance are far less significant
when most of the companies have had a similar story, as might happen in a recession. Companies that stand out among the rest should
be noted— whether their performance is more or less favorable than
the others.
It follows, then, that the Portfolio Review Report is also useful as a
tool to assess the economic climate as well as to look for individual
companies whose performance is noteworthy.
Be a Contrarian
A third and no less important function of this tool is the converse of
its primary job. That is to confirm your contrarian judgment when the
market is giving one of your companies a bad time. When all of the
Portfolio Review indicators tell you that the company continues to be
strong, to perform as you expected, but the price is going down, you
can smile smugly and buy some more.
Portfolio Trend Report
The Portfolio Trend Report was developed to serve a particular purpose not contemplated before the arrival of the computer on the fundamental investment scene.
Because the value of the Portfolio Review Report lies in analyzing
trends, it stands to reason that it would be most valuable to view two
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Toolkit 6