Hi, You often ask me what portfolio tracking application I use. Today I will show you the best one I use. His name is Sharesight. I was even able to get you a special offer. If you click on the link below the video, you will get 4 months for free. But first let's look at what this application can do. I love her, I can watch everything about my portfolio here. Let's show her! We are on the Sharesight website, where I created two demo portfolios for the exam, one in dollars and the other in crowns, because many of you are from the Czech Republic.
You see the currency gain here, I think you should know it, because it's quite important. Let's start with the dollars. I added only a few stocks to this portfolio, such as Apple, Facebook, AT&T. I bought them in 2016. We can see how we would do. There are three main things I like about this app. 1. There is an opportunity to compare your portfolio with the market, you can see whether you are beating the market or not. It is very important to know to find out if you are investing properly.
If you don't beat the market, it's bad. Active investors give a lot of time to invest. We analyze stocks, read about stocks, study annual reports, read books. We put a lot of time into it, and if you don't beat the market, you're doing it wrong. It is then better to buy index funds, you do not have to do anything, and yet you will have better returns. So if you are an active investor, it is important to be better than the market and you will find out right here.
With shares from Apple, Facebook and AT&T from 2016. The shares are here for example only. We see that we are beating the market. Yellow is our portfolio, blue is the market. 2. I like that they show you the annual yield. It's not just the total return, as is the case with most applications. "For example, the total return since 2015 is 250%." But you want to see average annual returns to see if you're beating the market consistently.
Here are the annual revenues and everything is displayed in them. This is purchased in 2016, so 29.81% is the average of this portfolio as if every year since 2016. We can see that the average market return for the year is 15.38%, so we beat the market twice. There is a capital gain, dividends and no monetary gain here, because it is a dollar portfolio. You will see the difference in the second portfolio. If you're not in the U.S., you have a different currency, but you're paying in dollars in the U.S. market, so you're facing a loss or gain in currency. If we look at the Czech portfolio with identical shares, we see that the currency gain is -4.23%. So here we lose money on the currency, due to the conversion of CZK to USD, but it can also happen that we will make money on the conversion of currencies. Here you can observe what is happening to your money. We have a lower return on this portfolio due to currency conversion. This page is great for these comparisons. 3. Another thing I love is that they will show you information about currently owned shares as well as those sold, just click on this button.
If you do not click on it, you will only see information about the currently owned shares, as with any other broker. Here, but you can also see information about your shares already sold. So both owned and sold shares will be included in this statistic. So you will see the total profit on all sold and currently holding shares.
These are the three main things I love about this app. 1. Comparison of your portfolio with the market, 2. Annual return, 3. Information about sold shares. There are many other features here. I love this app. There are a lot of charts here, you can see capital gains, dividends and currency gains. You can also turn on a stacked graph or resolution according to different groups, eg you can see sectors. We own Apple, so the technology, electronics and communications sectors will show us.
These are sectors from your entire portfolio. You can win with the charts as you like. Alternatively, turn on industry classification or create your own division. I prefer to compare the portfolio with the market to see if I'm better than the market. I shut down sectors. "Shall I beat the market? Yeah, I'm fine." You can add your stock positions manually, or you can import them from one of these brokers. Interactive Brokers, Yahoo, Finance, Fidelity. I add it by hand because I have so many brokers that it's easier for me.
You can also add them from a file. If you want to do it manually, click on add position. Let's write Tesla here, for example. Let's say we bought it on December 1, 2016. The price was $ 181 at the time. We will buy 100 shares. We will write down the price of that share, we can also add here the price that your broker deducts for payment. Mine will take down $ 5. Just save it. Now we see our portfolio including Tesla, now we average 60% a year, haha. This is not a bad thing at all.
One more thing I forgot. Tesla had a division of shares. But you don't have to worry about it, because the application will do it for you. On August 30, 2020, the shares were divided into 400 shares. I didn't do anything, the app did it automatically. Now let's show AT&T, because it pays you dividends. On this chart you can see all dividend payments. AT&T is currently not doing very well and is losing ground against the market. Blue is the market and yellow is AT&T. As you can see, investing in AT&T in 2016 would not be a good idea, because we would be -1% per year, including dividends, which it counts. I also forgot that you can set any other shares instead of the market. For example, let's say I only bought Shopify in 2016.
We'll see how we do. It's the blue line and we would do much better than with our portfolio. 116% every year. These were the most important things I watch almost every day to know that everything is fine. You can also play with the date chart. You can get it here from the first purchase, but I most often use tracking for the last year. I will find out if I have beaten the market in the last year. We have 227% here, because we have Tesla and Shopify. Here you can see if you are doing a good job. Another thing here is the statements of your investments. For example, we can choose a diversification report to see how we have diversified. Motor vehicles, communications, internet. There is a lot of data. Let's go back. Then there's the taxable income statement, where you see the taxes you will pay.
Forecast of income for the future, statement of historical share price, securities sold, about your performance, about the analysis of your positions or all reports at a certain time. You will find a lot of things here. I definitely recommend you this application, at least try it. There are so many features, I haven't even tried them all. As I said, if you click on the link below the video, you will get a discount. My link is: sharesight.com/erikinvestor When you click on it, it will take you to this page, when you go down you will see a special offer. "Special offer for Erik Investor followers. Get 4 months free with the purchase of an annual subscription." "Start for free." You can try it for free, and then when you start paying for a subscription, you get the discount because you came from my channel. That's all, your most common question has been answered. I most often use Sharesight to track my entire portfolio.
I use Yahoo Finance for a quick view of my portfolio and I use Simply Safe Dividends for dividends. To monitor the entire portfolio, but I always go to Sharesight, where I see how I'm doing overall. Some of you may say that this is just a promo, but it's not, I have a lot of other offers in the email, but I do not accept offers that I do not like and do not trust. I will not promote such things. But I've been using Sharesight for about a year now and I'm completely happy with it, so if you want to have the discount here, it's up to you whether you use it. Thank you for watching and I look forward to seeing you in the next video. Hi!.