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, February 20, 2007

And I thought this was getting easier !!

Along the lines of the "Less is More" posting - I just realized that I am going to have some serious issues in picking my next round of stocks. I had bought 20 back in Feb 06 - so I am going to have to replace at least 15 over the next few weeks. The problem is that I either own or have researched about 45 out of the 50 stocks on the top 50 list. What to do now ???

I don't like buying any of the stocks that still show earnings 3 month behind or more)- that usually takes 10-15 out right away. Then I throw out any total nightmares - just don't have the stomach for some of the filing violations and delistings. By the time I take out the stocks I already own and the one's I did not previously buy for whatever reason, I am left with about 5 stocks. I need to buy 15 !!!!! Now, I guess I am going to have to increase my list to the top 100 MFI screen. But would you not rather have top 50 compared to top 100 -- and did the book not tell us that the stocks to perform in order ??

So many questions - and I thought after one year, I would have an easy way to pick stocks.

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