I use Quicken to track investments. I'd like to track performance. Here is a situation that feels wrong:
- I buy stock S for $10/share.
- I hold for 5 years.
- I sell S at $20/share and buy S2 for $20/share.
At the moment of sale, Quicken now says S2 has a cost basis of $20/share. However, I originally bought at $10/share and I'm just moving money around. I consider moving from S to S2 a rollover, since I haven't added any outside money. I want to know the performance of my investments based on what I originally invested, not on the last purchase of some particular stock.
This situation is exacerbated because Vanguard has broadened the population of people who can invest in their lower-cost ("admiral") shares, and I am taking advantage. So, essentially, the cost basis for most of my funds will be wiped clean in November 2010. Aggravating.