Magic Formula Portfolio – April Update

Here’s the Magic Formula Portfolio (hypothetical) through the month of April:

Magic Formula Portfolio - April 2007

The portfolio was actually up over 13% last week but has fallen back to a little over 10.19% year-to-date, which still isn’t too shabby.

I’ll do the 3rd “Purchase” tomorrow. For more information on the portfolio and the strategy, see these posts:

A Look at Magic Formula Investing

Magic Formula – Portfolio Update

Magic Formula Investing Update – 2nd “Purchase”

DISCLAIMER: This is a hypothetical portfolio and is in no way a recommendation. Invest at your own risk.

3 thoughts on “Magic Formula Portfolio – April Update”

  1. Wow, talk about mixing in just enough truth to convince people. Personally, I think he’s just trying to sell more books. After all, if mutual funds are a bad investment, what should you invest in? Real estate I suppose; that’s what he does and if you buy his books, he’ll tell you all about it.

    Personally, I found his book (Where’s My Money) made me think about the world differently. But that doesn’t make him right.

    I’ve computed my own personal return, after fees. And while it wasn’t 20%, my 5-year annual return was 8.83% and I did it with very little effort. If I go back further it is only about 6% or so, and that includes the 2000 crash.

    There is no question that people do not get the most out of their investments, and because of psychology people regularly underperform their own investments grossly (putting money in after a fund has seen gains and pulling out after losses). That’s no argument to avoid mutual funds of course. That’s an argument to become more educated and use them more wisely, like any other tool.

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