Download
the Foolish Buy Calculator™
The
Foolish Buy Calculator™ spreadsheet determines the number of shares to
buy when purchasing stocks in "equal dollar amounts," a technique employed
in almost every Motley Fool®
investment model. Basically, you decide on an initial total investment
amount (say $10,000) then divide that amount by the number of stocks in
your chosen model (e.g. four stocks for the Foolish Four model). The resulting
number ($2500 in our example) is the dollar amount of each stock to buy.
The
number of shares of each stock that you buy is determined by dividing
this per stock dollar amount by the share price of each stock (for example,
$2,500 of a stock selling at $38/share would mean 65.78947368 shares,
or 65 shares since you can't buy fractional shares). In our example, you
would be buying $2470 worth of the stock (65 shares x $38/share). You
can never buy exactly equal dollar amounts of stocks that are not trading
at exactly the same price at the time you place the orders.
When
working with model portfolios the calculations are straightforward. However,
if you plan to make actual purchases with real cash money you will find
that things are not so simple. You have to factor in trading commissions,
eliminate fractional shares, allow for the possibility that the price
will change between the time you calculate how many shares to buy and
the time your trade is actually executed, deal with the fact that you
can't place all your trades simultaneously, make sure you wind up with
the smallest possible amount of leftover cash, etc. The process as carried
out in the real world is confusing and time consuming, and can cost you
unnecessary heartache and money.
That's
where the Foolish Buy Calculator™ comes in. You supply the commission
fee, initial total investment amount, up to 30 stocks you want to buy,
and their most current prices, and it manages the entire process for you,
dealing with all the variable factors.
To
ensure that your real-life purchases go as smoothly as possible, be sure
to read everything before doing anything and practice a few times before
you use actual cash money. You can practice via live trading of virtual
dollars at the Virtual
Stock Exchange™; registration is free.
The
Foolish Buy Calculator™ is shareware. If you use it more than five times,
you must send US $5.00 to the author. It's easy to pay via the PayPal
service using the link below. You can even get a $5.00 signup bonus if you're a new PayPal user, effectively making your FBC purchase free!
Llamagraphics web logos are trademarks of Llamagraphics, Inc. Used with permission.
Download
the Foolish Buy Calculator™
Copyright
©
by Michael Pizolato.
The
Foolish Buy Calculator and the FBC web site were created by
Michael Pizolato (pictured below).