Magic Formula Portfolio May Update

Well, it’s been a month since I last updated the Magic Formula Portfolio (a hypothetical portfolio I have been following since January). On May 1st, I purchased the third set of five stocks for the portfolio. For more on the selection process, read A Look at Magic Formula Investing. Here’s a look at the last 5 purchases (highlighted in grey) made using the closing prices on May 1, 2007:

Magic Formula 3rd Purchase

Now, here’s how the portfolio has performed so far this year:

Magic Formula Performance Through May 2007

Click here for an expanded table. Not too shabby! Up 17% since January. A total investment of $7,500 (3 purchases of $2,500 each) is now worth $8,776. Even after deducting $199 for FOLIOfn fees for the year, the portfolio is still up 14.36%. Keep in mind that the $199 fee is fixed so the larger the portfolio the smaller the fee will be as a percentage of the portfolio. In other words, the $199 fee seems excessive but that’s because we are dealing with a small portfolio.

I’ll make the fourth and final purchase in early July.

To read more about this portfolio, see these posts:

Magic Fomula Portfolio April Update

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.