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If you have been reading this blog for a while, you know I am a magic formula investor. I believed in the system from the beginning and have stuck with it even as there were rough patches on along the way. My biggest mistake was not being 100% in the system. The contrarian in me couldn’t resist picking up certain companies that weren’t in the magic formula , Wells Fargo (WFC), General Growth Properties (OTC:GGWPQ), etc.. I bring this up because the graphs and numbers aren’t real (this post was inspired by George to post my marketocracy results). If I post my investment record +financials+ microcraps, there would be a bit better due to the recent run-up in General Growth Properties. A couple things in mind when looking at these numbers
- Still short term results
- I pick stocks part time, doing basic security analysis by using a 3 step-30 second approach which will be outlined in my premium site. I do not care whether its May. I do not care who is going to win the super bowl. I do not care what the economy will do. All I care is purchasing 1$ for 50 cents. It could be a 50 million market cap, it could be a 100 billion market cap. The principle is the name, purchasing dollars for 50 cents makes sense.
- These portfolios are 100% magic formula investing stock
- I do not look at beta. I do not look at sharpe ratios. I do not look at Z-Scores.
Finally, for those who are going to e-mail me bashing me that this is fake money. It is. The point in this post is to show you the results that can be obtained by the magic formula. Financials are not part of the magic formula. My premium website ( $10 freakin bucks a month C’MON!!) will verify my portfolio through Covestor.com.
Concentrated Portfolio
Magic Formula Stocks using ONLY 3 step-30 Second Approach
Magic Formula 30 second- 3 step approach+ Basic Security Analysis
How about some TECH+Magic Formula
Maybe because he retired in 1990, Peter Lynch has been lost in the shuffle as one of the industry’s top fund managers. Over his course of his investment career(late 70′s-1990), Peter Lynch averaged a 29% average return before stepping down at the helm of the then largest mutual fund, Fidelity Magallen. Unfortunately, Lynch semi-retired before the internet really took off and thus he doesn’t get the kind of exposure as Warren Buffett, Martin Whitman,etc. whose speeches, annual reports are constantly being reported by media and the blogosphere. [click to continue…]
Each week I track which stocks are moving in and out of the top 30 Magic Formula Stocks for companies with a minimum market cap of 50 and 2000 million. Here are the moves for the week ended 5-31-09. [click to continue…]
Each week I track which stocks are moving in and out of the top 30 Magic Formula Stocks for companies with a minimum market cap of 50 and 2000 million. Here are the moves for the week ended 5-23-09. [click to continue…]
You have to love a story in which an individual takes control of a company and then works hard to build that company to compete against dinosaurs that have more advanced technology and have been in the business for a greater number of years. In the past year, BYD has garnered national attention as an individual in Omaha has taken a 10% stake in the Chinese auto manufacturer. A big reason for Buffett’s interest in BYD is its CEO Wang Chuanfu, who has built up this once bankrupt auto maker into a potential powerhouse in the hybrid and electric car arena. But, as Chinese auto manufactures try to capture market share in the U.S. some critics and individuals are going to start questioning the safety, quality, and political aspects of allowing Chinese autos on U.S. soil. [click to continue…]
Yes!!!!! Contrarian Value Investing (the thingymajjigger you are reading) made the list of top 50 buy and hold blogs over at ETF Database. Any recognition is good recognition. Actually, I put in a little work on the blog when I first started than I do now. Now I am concentrating on a membership site in which I am hoping to guide individual investors on the proper way to use the magic formula.
If your interested, use the form below to get updates on when we launch….
Some of the benefits you will learn at the new site:
- The #1 reason you worry about your portfolio 24/7
- Why you should not worry when earnings season begins
- How to avoid value traps
- Discover the #1 way to avoid a Ponzi Scheme (i.e Bernie Madoff)
- Discover a 3 step-30 second approach to determine whether a stock requires further investigation
- Works for small, mid and large caps
Of course there is much more!!!
Each week I track which stocks are moving in and out of the top 30 Magic Formula Stocks for companies with a minimum market cap of 50 and 2000 million. Here are the moves for the week ended 5-16-09: [click to continue…]
I have mentioned Seth Klarman several times before. I find his investments “intriguing” in the sense that his investments hardly overlap the investments of other value fund managers. Anyway, below is a excerpt of the March Outstanding Investor Digest. Also, for those interested in his holdings, they were recently made available and Todd of Value Plays did a nice job of summarizing his increases and decreases. [click to continue…]
One of my favorite sites to visit is Morningstar.com. Morningstar is known for its coverage in the mutual fund industry and has moved into the stock arena. And it appears they will start moving into the hedge fund arena. I enjoy browsing through Morningstar as I consider it a well rounded site with a value twist added to it. Whether their analyses on stocks are right or wrong, that usually depends on the outcome. For example, they were early in calling a housing bottom and I remember very clearly how they were reccommending certain housing stocks. Anyway, despite some of their errors ,which is expected in this industry, I still believe they are the closest thing we have to a “value based” website that offers a bit of everything. Anyway, I found their recent article on Burlington Northern to be very interesting. [click to continue…]
Each week I track which stocks are moving in and out of the top 30 Magic Formula Stocks for companies with a minimum market cap of 50 and 2000 million. Here are the moves for the week ended 5-10-09: Happy Mothers Day to all the beautiful mommies out there. [click to continue…]
