On Tue, Nov 10, 2015 at 07:37:27PM +0000, Wm... wrote: > Looking at a diff between the current > > advanced-portfolio.scm > and > http://lists.gnucash.org/pipermail/gnucash-devel/attachments/20110110/935 > f42b3/attachment-0003.bin > > the IRR bits seem fairly self contained. >
Agreed; there are only a few places where the code was reshuffled that I am having trouble with. But I blame my inexperience. > The thing I wonder about is if an IRR wouldn't immediately result in person > A wanting it to be tweaked this way, B arguing it should be done slightly > differently and C wanting something else included or excluded. > I don't know that that's the case; IRR is a simple calculation without much tweaking, so long as you enter correct data on the starting dates. Perhaps you have others in mind, but the only wrinkle I can think of is: (*) Person A wishes to treat Dividend Income separately and use IRR for only price appreciation; Person B wants to look at the IRR of total return. I'm not sure how to handle this or if it is worth ignoring. > Also, does IRR as an into-the-future calculation or tool for deciding > between prospective investments fit in with the rest of gnc's functionality > generally? > > In short, isn't this the kind of thing spreadsheets will always do way > better than we could ever do? I don't see IRR as an into-the-future calculation nor for deciding between investments. I thought that tangent in the original thread discussion was a bit of a mischaracterization; certainly for stock investment accounts this is not the case. IRR serves roughly the same purpose as "Rate of Return" currently does in advanced portfolio, but is more intelligent: adding $5,000 to a $1,000 account today doesn't affect the IRR number but does affect the rate of return significantly. And the same is true for less extreme situations, IRR is simply a more robust accounting of how investments have previously done. I hope that makes it clearer why I think this is a useful feature. Cheers, Thomas
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