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Average Cost vs FIFO vs LIFO vs HIFO vs Specific Share Identification

Posted: Tue Feb 19, 2013 2:38 pm
by MachineGhost
So what is everyone's choice of poison, and why?

Re: Average Cost vs FIFO vs LIFO vs HIFO vs Specific Share Identification

Posted: Tue Feb 19, 2013 3:56 pm
by moda0306
Either LIFO or specific identification are usually the best.

Is HIFO a new choosable method or just another term for specific identification and finding the highest priced shares?

Re: Average Cost vs FIFO vs LIFO vs HIFO vs Specific Share Identification

Posted: Tue Feb 19, 2013 4:05 pm
by dualstow
MachineGhost wrote: So what is everyone's choice of poison, and why?
For individual stocks, I use FIFO. I'm sure it's not ideal, but it just keeps things simple and consistent. I don't sell that often, either.
For index fund shares, I use average cost now that Vanguard offers it.

Re: Average Cost vs FIFO vs LIFO vs HIFO vs Specific Share Identification

Posted: Tue Feb 19, 2013 8:46 pm
by BearBones
I use specific shares because it allows me more flexibility when/if tax loss harvesting.