Submitted by Picksologic t3_10o5sk8 in dataisbeautiful
Picksologic OP t1_j6dorna wrote
Reply to comment by Sheamus_1852 in [OC] Comparison of Lump Sum vs. Dollar Cost Average investing in TSLA (Tesla) stock. by Picksologic
The chart is skewed due to ignorance, not intention. I'm not advocating for DCA, just learning how to make graphs in Excel and picked two metrics which in this case are not appropriate. In any case the feedback I'm getting is really helpful. I think I will try charting a mature company as you suggested although it might be hard to pick a random start point.
Sheamus_1852 t1_j6dv9lj wrote
Totally understand. Great chart design. Definitely do a mature company. Thanks for being humble rather than defensive.
Jolly-Feed-4551 t1_j6dyinj wrote
I was going to point out that in a bull market you are obviously going to make more money by investing a lump sum early (or DCA early) than keeping most of your money uninvested for the better part of a decade, but this comment puts it into context for me. As far as the visualization itself, I am confused why orange is labeled as $15,084 initial investment in the chart but the description says $15,100. I would also like to see the total DCA investment identified, I assume the DCA investments are made on the first of each month but you don't say specifically.
Picksologic OP t1_j6e8451 wrote
The discrepancy in the start amount is me trying to learn formulas as well as graphing.. It should be $15,100. The total DCA investment is also $15,100, with the investment on the first of the month. I mistakenly assumed that having the x axis dates on the first of the month was sufficient, but will keep that in mind for the next time.
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