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.

Tuesday, March 21, 2006

How to pick the Big Winners ?

I invested in 20 stocks at the same time (which I later learned is not the way to start out according the book guidelines) - but you get a wide spectrum of gains and losses.

With a little less than one month in - my biggest loser is 10% down - and my biggest gainers has raced up 32%. Most of the picks are between +/- 5% (more on the plus side - which is always good to know).

How do you find these big winners - the stock that gained 32% PWEI - has been under $3 less than 1 year ago and under $7 less than 6 month ago.

In this case - Small company - sales growth leading to sudden earnings turnaround. Sounds simple, but you tell me how to find more of these ????

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