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, January 09, 2007

Closing in on 1 year Anniversary

My MFI - one year anniversary will be in Feb -- The overall results so far have been mixed - here are some details:

Bought 23 different stocks in Feb -- I sold 3 of them early -- one I got down on and just could not see it through any more (Motorola - good decision, I guess). One tanked then went up a little bit and then got bought ( Portalplayer - see my earlier posts in this one). And I sold my biggest gainer for tax reasons -- American Eagle went up some 85% -- I sold it in December, because I had some losses (Portalplayer), and I figured this would be tax effective.

So my Feb - purchases are up 22% overall -- compared to about 10-12% gain for SP500, Dow, or NASDAQ over the same time period.

I also have 3 other buying periods, where I added 8-10 stocks (May, Aug, Nov) -- those have NOT done so well - but they also have a little longer to come back ... Overall that group is up about 3%.

Where does that leave me overall -- About the same as most popular mutual funds - between 10 and 12 %.

What I have not added in here is the Learning aspect and the System (ease of decision) aspect - which I will explore in my next blogs.

Wednesday, January 03, 2007

New Year's Resolution - keep my blog going and build it up.

No sure why I did not keep my MFI blog going - but I think after the initial enthusiasm for MFI, I calmed myself down a little bit and stopped obsessing about the whole thing.

Overall - I am still on track with the MFI portfolio. Of course things change, but I am getting closer to my 1 year MFI anniversary and I will start selling my first "batch" of stocks - although some have already departed.