AUGUST 1986
Now for August 94. I'll be shorter in my explanations and you'll see you will still understand because you did the same thing every month. While every month is done the same, the outcome can be quite different.
First look up the price of Claire's stock. Claire's price is $12.37. Write in column 3. Then multiply the number of shares owned (still 654 shares since you didn't buy or sell any last month) by the price of one share and that gives you a SHARE VALUE of $8,093. SAFE is always 10% so write 809 in column 5. Again the only thing that affected CASH is INTEREST; you earned another $17. So write $17 in column 12 and add $17 to your CASH. You now have $3,334 in CASH. Since you didn't buy any stock last month, PORTFOLIO CONTROL stays the same at 6,700. Again the magic two numbers, SHARE VALUE and PORTFOLIO CONTROL. Again since SHARE VALUE is higher put that on top. Since SHARE VALUE is higher, you have a potential (sell) signal; now write the higher amount SHARE VALUE on top:
You should be writing all these figures on your sample spreadsheet the same as the illustration at the end of the Chapter shows. Again you will find all of these Excel spreadsheets with all of the information when you look at the printed version of my book in Adobe Acrobat that I will send you for free. At the end of this Chapter in the Adobe Acrobat book is a blank sheet you can photocopy and use.
As you can see, you're getting your first sell order. Now divide $584 by the SHARE PRICE ($12.37) and you have 47 shares to sell. Write (47) in SHARES BOUGHT (SOLD) column. Now finish your months’ work by figuring out your PORTFOLIO VALUE. It's ($8,093) + column 6 ($3,334) = $11,427.
You’re ahead $1,427 but better things are still ahead.