I meant to do this at the close of the third quarter but didn’t get around to it. Anyway, here’s an update on the Magic Formula Portfolio.
Overall, the portfolio has done okay. This portfolio was up as much as 26% at one point during the year and down as much as -4%. So, it is very volatile, which is something to consider before utilizing this portfolio.
Here’s a look at the performance so far this year:
The stocks purchased at the beginning of the year have done quite well as opposed to the stocks purchased in July, which was right before the August swoon.
I’ll keep following this portfolio and give you updates every month or so. I’ll definitely do a year-end update so we can compare the portfolio’s performance with various benchmarks.
In the meantime, if you would like to read more about the Magic Portfolio, check out these posts: