Cross-Currency Investing

[ltz_Raptor]

Hi,

I am an international investor located in Europe (The Netherlands).
I have been using Google Finance for long - as it is the closest
fitting portfolio managing tool to my needs.
There are however some ideas I would like to share and seen
implemented into the functionality of Google Finance.

Since I invest using Euros in both local and international stocks, the
valuation of the stocks are strictly correlated with currency exchange
rate of the host country and the Euro.
Currently Google Finance is unable to adjust the cost-basis to
historical currency exchange rates.

Example as illustration:
Buy Stock X @ $14.00 at EUR/USD exchange rate of 1.4, therefore
"costing" €10.00.
Now Stock X does not change in value for a year, while the EUR/USD
exchange rises to 1.6.
Google Finance will keep the cost basis at $14.00 and subsequently
adjust the cost basis in Euros only to the current exchange rate which
leads to a "cost basis" of €8.75, which is lower than the actual
€10.00 paid.
This is highly misleading, as a loss is not recorded for cross-
currency investors.

Furthermore, a similar problem occurs when buying foreign stocks:
which is that commission is paid in local currency.
Google Finance is not sufficiently equipped to accommodate cross-
currency transactions and portfolios.

My suggestion for improvement is as follows:
1. In the transaction entry of a stock, allow for an exchange rate
entry and adjust the cost basis of a stock to historical values.
Current market value should remain adjusted to current exchange rates.
2. Include the option to record commission paid in local currency.

I hope my comments are clear and will be implemented as I am a proud
Google Finance user.
I am open for questions and I am eager to assist in making Google
Finance THE tool to use by investors, locally and abroad.

Thank you,
Qurein

[Francisco Borges Leitão]

Dear ltz_Raptor,

Did you receive a response from Google on this topic?

I also face this issue and it would be great to have a solution for it.

Best,

Francisco

[Paul Parker]

Yes, this problem continues,  users, need ability to specify currency for each of their pages to reduce confusion.