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, August 17, 2006

AUGUST BUYS -- completing my $$ investment in MFI

August represented my last round of investing part of my savings in MFI stocks. I may have to sell some of my February buys in November, because I would like to get towards a regular quarterly buying.

Again -- I used a different approach to buying / picking the stocks this time around. I was getting a little worried about having so many stocks in the portfolio that showed recent disasters -- meaning BIG one-time drops or 3 month downward trends dropping 30-50% in value.

So again, I waited until about 2/3 of the MFI top 50 list (100 mill cap) was updated for earnings and i kicked out stocks I already owned. That gave me 30-32 stocks. Now I went and checked their current price against the 50 day and 200 day moving average and I kicked out all the "disaster" stories (many were 30-50% off the averages). Of the remaining 15 bought 7 stocks at random.

ASPV
CRYP
IVAC
HRB
THO
GIB
VTRU

Not very happy about the VTRU and HRB being in the group. They have been lingering in the MFI listings for a long time now - and VTRU has at least done a little something, but I really have very little faith in HRB. (See my post about HR Block for more...)

Funny coincident about GIB -- I did not realize right away that this was CGI -- a tech consulting company out of Canada. My brotyher just got a job there in Germany -- now this is a REALLY big deal since people in Germany DO NOT switch jobs very often (I think this is the 2 company he has worked for in the last 15 years..). So, now I have somebody to blame if this stocks goes downhill...

2 Comments:

Anonymous Anonymous said...

ummmm, those "disaster stocks" might have been the best buys.

You still seem to be in the buy high (winners after they're winners) sell low mind set.

Look at it this way, you could have bought while IT WAS LOW, after the news had hit and it was below it fair value price.

1:30 PM  
Anonymous Anonymous said...

Swimmer, Are you still posting here?

I have enjoyed your previous posts.

Feloow MFI'er

6:04 AM  

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