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Zee,

The discrepancy arises from the fact that it's an average of numbers and the averages don't fit the same calculation as each individual component. For example, say your portfolio had stocks with the following prices, intrinsic values and PIV-ER's:

Price IV PIV ER
----- --- ------- ------
100 100 100.00% 0.00%
90 100 90.00% 11.10%
80 100 80.00% 25.00%
70 100 70.00% 42.90%
60 100 60.00% 66.70%
50 100 50.00% 100.00%
------ -------
Average (Mean) 75.00% 40.95% (add each column and divide by number of stocks)

But if you use the formula (1-PIV)/PIV, then (1-.75)/.75 = 33%

I'm sure there's some technical mathematical explanation, but this is how it works. Of course, we should also probably look at the weighted average of our portfolio (larger holdings count for more).

Paul (who wondered the same thing when I looked at my own portfolio)
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