Human Nature
One of the main reasons for using the Magic Formula for my investments was NOT to have to worry about the daily checking of prices and company news. I was hoping to buy my shares, glance maybe once a week at the portfolio totals, and then do my quarterly updates.
Where did I go wrong ? First thing in the morning is a look at my holdings -- I know the release date for all the earnings - I know that American Eagle is reporting sales figures tomorrow. I know the daily ups and downs of Portalplayer. I wrote an e-mail to PW Eagle's investor relations (another story in itself). I check this board every day. I can tell you the exact % my shares are up compared to every index out there.
Where did I go wrong ???
posted by Erik Hochstein @ 1:49 PM
6 Comments:
I don't think it hurts to look daily (I do) as long as you don't stress out about it when it drops down, and know that over the long haul things will be up. Depends on the person I guess.
Relax. Start reading sensible stuff before bedtime, like The Intelligent Investor or all of Buffett's letters to shareholders. This will give you a more detached and unemotional perspective.
Thanks for sharing your experience. I'm currently stuck between Modern Portfolio Theory and the magic formula. Both approaches sounds good. Similar amount of work, MPT sounds safer, magic formular has better upside.
Hope you survived portalplayer. It's a one trick pony that lives or die with ipod.
Apple Dumps PortalPlayer Chip
http://apple.slashdot.org/article.pl?sid=06/04/21/1454231&from=rss
Gordon
Swimmer how about an update!?
Nick
www.magic-formula-investing.blogspot.com
updaaaate!!!
I too would be interseted in an update.
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