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Magic Formula Portfolio Update

By JLP | October 5, 2007

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:

Magic Formula Portfolio

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.

Stay tuned…

In the meantime, if you would like to read more about the Magic Portfolio, check out these posts:

A Look at Magic Formula Investing

Magic Formula – Portfolio Update

Magic Formula Investing Update – 2nd “Purchase”

Magic Fomula Portfolio April Update

Magic Formula Portfolio May Update

Magic Formula Portfolio July Update

Magic Formula Portfolio August Update

Topics: Investing, Magic Formula Portfolio | 5 Comments »

5 Responses to “Magic Formula Portfolio Update”

  1. Aaron Smith Says:
    October 5th, 2007 at 2:26 pm

    Those basic material stocks in the portfolio sure are pulling their weight! PCU, FCX, and FDG doing great. Surprised to see FTO down, it must be underperforming most oil stocks.

  2. MossySF Says:
    October 5th, 2007 at 9:55 pm

    I just bailed out on Magic Formula. Not that it wasn’t performing as expected — just tired of looking at 30 minor positions in my portfolio tracking software and having to group them together to compare asset class performance. For the “deep value” classes, Rydex Pure Value ETFs is close enough for me.

  3. Sam Says:
    November 23rd, 2007 at 9:32 am


    I always enjoy reading about others Magic Formula projects/ experience.
    I’m holding a portfolio with European selected Magic Formula stocks.
    If you’re intrested, you can find it at

  4. A Not-So-Good Year For the Magic Formula—� AllFinancialMatters Says:
    January 2nd, 2008 at 8:21 am

    […] Magic Formula Portfolio October Update SHARETHIS.addEntry({ title: “A Not-So-Good Year For the Magic Formula”, url: “” });   [link] […]

  5. MF Modified Says:
    January 30th, 2008 at 2:07 pm

    A tip, do not buy pharmaceutical companies spit out by the MF. While some may outperform, it seems most of the companies that are returned have high past ROC’s because of one or two major drugs with patent protection. Unfortunately, these drugs are driving the majority of the companies’ returns and are heading toward patent expiration. What would your return be had you dropped VPHM, BPV, KG & ASPV? I have only looked at KG in depth and wouldnt touch it.

    This same principle applies to a lot of the tech companies retuned by MF.