Understand your investments
Investment metrics don't have to be intimidating. Learn the key concepts behind the numbers on your dashboard — in plain language.
The basics, explained
These definitions match how AbateInvestments calculates and displays your metrics — so you always know what a number means.
Cost basis
The total amount you invested in an asset, including purchases and closing costs. It's the baseline for calculating gains and losses.
Realized vs. unrealized gains
Realized gains come from selling an asset; unrealized gains come from its current value exceeding your cost basis. Both matter, but they're different.
Time-weighted return (TWR)
Measures investment performance independent of cash flows in and out. Useful for comparing managers or strategies.
Money-weighted return (MWRR)
Accounts for the timing and size of your contributions and withdrawals. Reflects your actual experience as an investor.
Asset allocation
How your portfolio is distributed across asset classes. Diversification across classes can reduce concentration risk.
Deposits are not profits
Adding money to a portfolio increases its value but isn't a gain. Withdrawing money isn't a loss. AbateInvestments never confuses the two.
Important note
This educational content is general information, not personalized investment advice. AbateInvestments does not recommend specific investments or strategies. Consult a qualified financial professional for advice tailored to your situation. Investing involves risk, including the potential loss of principal.