Magic Formula Investing

Using the Magic Formula for investing; based on "The Little Book that Beats the Market" I started a real life test with $50,000 of my own money. The blog described the process, thoughts, pain and ongoing updates on this adventure.

Thursday, March 09, 2006

THE BUYING

I had 24 stock names - and $50,000 to invest - Plus a money market reserve of $5000 which I wanted to keep. I figured that I would start by buying about $2,000 - $2,500 per stock. I just started buying share multiples that would give me about a $2,500 value. Within 20 minutes I had 20 stocks - and I realized that for some reason I always rounded up just a little to get even numbers - so I was at about $50,700 in stocks. I moved a little more money into the account - (did not want to buy on margin) and I was done. The 4 stocks I did not buy were randomly left out. Here are the stocks and the buying price on Feb 23 or so (2 weeks ago):

Buying Price Total on FEB 23, 2006: $50,740 including transaction cost
ON SAME DAY:
DOW JONES - 11093
SP500 - 1290
NASDAQ - 2287

AEOS 25.79
CHKE 39.05
CSGS 22.14
EGY 6.42
ENDP 30.73
FCX 52.71
FTD 9.5
GBEL.OB 11.3
HAS 20.55
INSP 24.4
ITWO 15.92
KFY 20
KSWS 29.94
NTGR 17.01
PLAY 25.82
PWEI 20.34
SYNA 23.92
TBL 35.07
ULCM 11.04
UST 39.02

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