Merry Xmas everyone! I have a lot of things to be thankful for this Christmas evening, but my Magic Formula Portfolio ain’t one of them!
On Christmas Day 2018 my Magic Formula Portfolio was worth $45,530.56, which means that it has lost me $14,522 since I started this journey nearly two years ago. Ok, the longest bull market in US history is over, and markets have been tanking as we approach the new year, but if I would have simply invested in the SPY (a low-cost S&P 500 ETF) I would have been far better off. During the same time frame that my poor portfolio lost over 24% of its value, the SPY returned over 1.2%. And I’m not including the dividends that the SPY has returned – I’ll update for this soon.
Here is the portfolio on Christmas Day 2018:
One thing that is not obvious is that I have only 29 companies here (instead of 30) and more cash (over $5k) than you would expect. This is because one of my companies, Syntel (SYNT) was acquired by a company called Atos back in October.
Around the same time, Tronc (TRNC), another of the Magic Formula stocks, changed its name to Tribune Publishing Company (TPCO).
At this time I’m starting to sell my Magic Formula stocks and reinvest them for 30 others. Check back for more updates soon. Happy Holidays!
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