Hello Dear Readers! It’s time for the Holiday update of my “Magic” Formula Portfolio. This is the last update before I start another round of swapping my stocks for new ones later this month. Here it is:
Since inception (coming up on six years ago) my portfolio has gained about 20.5% in value, while the SPY is up nearly 70% over the same period. And I’m not including the the SPY’s dividends during this period, so it’s even more of a gap. Happy Holidays, and take care everybody!
Hi Andrew, great blog! I have just read the book and was about to embark on a similar journey but after reading your blog I have 2nd thoughts. I was thinking of using the MF strategy but in conjunction with trailing stop losses at -20 to -30%. Do you think this would work well or would it cut off potentially profitable companies too early?
cheers
Hello Thomas,
Others have speculated on how to improve on the formula, but I haven’t seen any numbers to back up these theories up, and I don’t really have an opinion on the stop losses. I encourage you to research it, and I discourage you from starting a real money portfolio until you do, because I simply don’t believe in the MF strategy anymore. In fact, I just decided to give up on it myself! I’m in the process of writing my final portfolio update post, so stay tuned.
Thanks,
andrew