UPDATE: Just to give you an idea of how quickly this portfolio moves around, I refreshed my Excel spreadsheet and noticed that it is now up 6.51%. It was up 6.11% when I composed this post.
Well, since my last post on the Magic Formula Portfolio, it has been a rollercoaster ride. When I last reported on the formula on August 7, it was up 4% for the year. Since that time it actually went negative and now is now back up to a 6.11% gain for the year. This portfolio is not for the faint of heart and should only be used for a small portion of your investments – say 10% – 25%.
Here’s the portfolio arranged in order of performance:
The following graphic shows how each of the four purchases have performed. Remember, this is a hypothetical portfolio.
Even with the bounce back up to over 6% from a negative, we are still a long ways from the 26%+ return this portfolio registered earlier this year.
For more information, check out the following posts: