Comments on: Magic Formula Portfolio Update http://allfinancialmatters.com/2007/02/09/magic-formula-portfolio-update/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Thu, 24 May 2012 17:31:52 +0000 hourly 1 http://wordpress.org/?v= By: magic formula investing http://allfinancialmatters.com/2007/02/09/magic-formula-portfolio-update/comment-page-1/#comment-307899 magic formula investing Mon, 12 May 2008 16:10:34 +0000 http://allfinancialmatters.com/?p=1570#comment-307899 [...] [...] [...] [...]

]]> By: Olaf http://allfinancialmatters.com/2007/02/09/magic-formula-portfolio-update/comment-page-1/#comment-75969 Olaf Thu, 15 Feb 2007 07:16:25 +0000 http://allfinancialmatters.com/?p=1570#comment-75969 I found the book for free online from my public library(Los Angeles PL). Since it's printe as an eBook, I didn't even have to leave my house or worry about late charges. Now I just need to figure out what the heck I'm doing. I found the book for free online from my public library(Los Angeles PL). Since it’s printe as an eBook, I didn’t even have to leave my house or worry about late charges. Now I just need to figure out what the heck I’m doing.

]]> By: Ankit http://allfinancialmatters.com/2007/02/09/magic-formula-portfolio-update/comment-page-1/#comment-74332 Ankit Sat, 10 Feb 2007 04:54:06 +0000 http://allfinancialmatters.com/?p=1570#comment-74332 You should the join and browse the Yahoo group for MFI (http://finance.groups.yahoo.com/group/magicformulainvesting/). I have invested 50% of my portfolio in to this and I will complete my first year in about 7 weeks. I just bought my last batch a week ago (buying five stocks every two months). At this stage, I am up about 12% since I started, but over 30% annualized. Even if we neglect the annualized number, the portfolio has done well for me. Also, I used BuyandHold.com as the trading costs are cheaper, although you couldn't buy every stock in Greenblatt's main screen. You can also try Zecco and their commission free trades. Overall, I am satisfied so far with the MFI strategy. You should the join and browse the Yahoo group for MFI (http://finance.groups.yahoo.com/group/magicformulainvesting/). I have invested 50% of my portfolio in to this and I will complete my first year in about 7 weeks. I just bought my last batch a week ago (buying five stocks every two months).

At this stage, I am up about 12% since I started, but over 30% annualized. Even if we neglect the annualized number, the portfolio has done well for me. Also, I used BuyandHold.com as the trading costs are cheaper, although you couldn’t buy every stock in Greenblatt’s main screen. You can also try Zecco and their commission free trades. Overall, I am satisfied so far with the MFI strategy.

]]> By: JLP http://allfinancialmatters.com/2007/02/09/magic-formula-portfolio-update/comment-page-1/#comment-74136 JLP Fri, 09 Feb 2007 19:09:14 +0000 http://allfinancialmatters.com/?p=1570#comment-74136 TFB, Yeah, that's a good point. I have a feeling that the strategy will work over the long-run. I just don't know HOW WELL it will work. I mean, will it get the numbers that Greenblatt says it will get? I don't know. Have you read the book? TFB,

Yeah, that’s a good point.

I have a feeling that the strategy will work over the long-run. I just don’t know HOW WELL it will work. I mean, will it get the numbers that Greenblatt says it will get? I don’t know.

Have you read the book?

]]> By: TFB http://allfinancialmatters.com/2007/02/09/magic-formula-portfolio-update/comment-page-1/#comment-74130 TFB Fri, 09 Feb 2007 18:59:39 +0000 http://allfinancialmatters.com/?p=1570#comment-74130 How long are you going to try it for before you reach a conclusion? If it worked this year it may not work next year. Or if it didn't work this year, it doesn't mean it won't work next year. There's always going to be hope and doubt. I just wonder when and where you draw the line and say if it's working or not. How long are you going to try it for before you reach a conclusion? If it worked this year it may not work next year. Or if it didn’t work this year, it doesn’t mean it won’t work next year. There’s always going to be hope and doubt. I just wonder when and where you draw the line and say if it’s working or not.

]]> By: JLP http://allfinancialmatters.com/2007/02/09/magic-formula-portfolio-update/comment-page-1/#comment-74109 JLP Fri, 09 Feb 2007 18:22:31 +0000 http://allfinancialmatters.com/?p=1570#comment-74109 quahaug, Thanks for the comment. I'm skeptical too. The main reason I want to do this experiment is to test Greenblatt's methods, not to necessarily recommend them. If the formula looks like it might work, I wouldn't be against putting a portion of my portfolio into it. quahaug,

Thanks for the comment. I’m skeptical too. The main reason I want to do this experiment is to test Greenblatt’s methods, not to necessarily recommend them.

If the formula looks like it might work, I wouldn’t be against putting a portion of my portfolio into it.

]]> By: quahaug http://allfinancialmatters.com/2007/02/09/magic-formula-portfolio-update/comment-page-1/#comment-74108 quahaug Fri, 09 Feb 2007 18:15:29 +0000 http://allfinancialmatters.com/?p=1570#comment-74108 After the first month, I would hope these above-average stocks would perform well. However, I'm still very skeptical. An individual investor's greatest strength is to watch each stock's movement as well as the market in general and react when thresholds are crossed. I expect that good mutual funds would do better than your method. They may not be able to react as quickly as an individual, but at least they can act upon ever changing trends. After the first month, I would hope these above-average stocks would perform well. However, I’m still very skeptical. An individual investor’s greatest strength is to watch each stock’s movement as well as the market in general and react when thresholds are crossed. I expect that good mutual funds would do better than your method. They may not be able to react as quickly as an individual, but at least they can act upon ever changing trends.

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