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 … [Read more...] about Portfolio Update 12/25/2018
Magic Portfolio Update 2/25/2018
Gentle reader, I have committed to following this strategy for five years, but so far I am losing! Here is my Magic Formula portfolio just over a year after the beginning of this experiment: My portfolio balance at the beginning of this journey was $60,052.40, meaning that so far the "Magic" Formula has lost me $2,212.54. But it's cost me more than that. The SPY … [Read more...] about Magic Portfolio Update 2/25/2018
Magic Formula Portfolio Update 9/11/2017
So far this Formula doesn't seem so Magic at all! At the end of trading today here is a snapshot of my Magic Formula Portfolio: I'm losing money with this scheme! Meanwhile my benchmark ETF, the SPY, is now trading at $249.21, which is up over 7.6% since I started this experiment on February 10th of this year. I would've been much better off just investing in that ETF! … [Read more...] about Magic Formula Portfolio Update 9/11/2017
Stock Spin-off: TEGNA (TGNA) and Cars.com
Another eventuality that must be considered when following the Formula but is not covered in The Little Book that Beats the Market is a Stock Spin-off. This is when a company divests in some part of the company, "spinning off" a separate company that, in this case is publicly-traded and is represented by a different stock symbol. TEGNA shareholders received shares of spun-off … [Read more...] about Stock Spin-off: TEGNA (TGNA) and Cars.com
Why Doesn’t Mr. Greenblatt Run a Magic Formula Fund?
The reason this site exists is because Joel Greenblatt wrote a fascinating book that details a strategy for beating the market. The book captured the imaginations of perhaps millions of investors the world over, and inspired me to report on my experience following the strategy. Any prudent investor, however, before taking the plunge, mostly likely did a quick sanity check to … [Read more...] about Why Doesn’t Mr. Greenblatt Run a Magic Formula Fund?