Comments for Magic Formula Investing

Comment on Magic Formula Stocks On The Move 3-27-2011 by James Jobs

James Jobs — Tue, 27 Dec 2011 06:01:25 +0000

@ Tom – “Does anybody know why?” It could be a lag time in post update. You might want to check it now at their website.

Comment on Oil Stocks by chel

chel — Tue, 12 Jul 2011 01:34:46 +0000

Actually I don’t know anything about oil stocks since I don’t use it, although we are all affected about the price in the market. Very annoying, getting higher every now and then.

Comment on Ready to Invest: Pre-Investment Considerations by 9 Invest Pre Sites

9 Invest Pre Sites — Sun, 03 Jul 2011 18:29:14 +0000

[...] Invest Pre Sites by on Sunday, July 3rd, 2011 | No Comments Ready to Invest: Pre-Investment Considerations | Magic Formula .May 14, 2010 Although keeping money in a savings account gives the feeling of being financially [...]

Comment on Some Tips On How To Pick Stocks by kira

kira — Wed, 08 Jun 2011 11:02:05 +0000

I’m a stock broker and I know what kind of stock will best fit every individual. This post are very helpful.

Comment on Some Tips On How To Pick Stocks by Dave

Dave — Sun, 05 Jun 2011 22:57:14 +0000

I just attended a financial management seminar last Saturday. My eyes have been opened to many investment opportunities including Mutual Funds, ForEx, T-Bills and Company stocks. However, there was not a thorough discussion on buying company stocks. Although I am already very interested, I still have reservations because I do not totally understand how this thing works–yeah, not just yet. But really, thanks to this post, my knowledge is building up. I’ll be reading the rest of your entries, too. Thanks for providing help to us newbies.

Comment on Understanding Asset Allocation by Drew

Drew — Thu, 26 May 2011 00:30:44 +0000

MFPro:

I’ve been a big-time asset allocator for years, breaking my portfolio into about 11 different asset classes (via index funds, weighted a bit more towards value classes) and rebalancing regularly.

And then I read Greenblat.

He makes a ton of sense and outlines a great way to approach what sounds essentially like a US Value class in a way that beats even DFA’s Targeted Value index fund.

My question is: have you figured out a way to integrate Greenblatt’s Magic Formula into an overall asset allocation strategy? Or do you recommend tossing out all the asset classes together and going 100% with Greenblatt? His returns are impressive enough to tempt me to do this, but I’m not sure I should.

I’ve searched around and haven’t found much on how to use the Magic Formula within an overall portfolio. I see now that he has launched both a US and International Magic Formula Fund, so I suppose one could do a basic 50-50 allocation in each and rebalance every so often . . . but then you wouldn’t have room for commodities, REITs, etc.

Thoughts?

Comment on Calculating Return On Capital by Peg Rhodes

Peg Rhodes — Mon, 25 Apr 2011 17:10:49 +0000

I ran your version of ROIC through a couple of my stock purchases the numbers came out okay but I prefer a calculation that gives me a net percentage before taxes

Comment on Warren Buffett on Value Investing by Don

Don — Tue, 19 Apr 2011 23:26:23 +0000

Buffet might be a savvy investor, but he sure missed the boat by dumping his silver bullion way too early. He lost his investors millions of dollars by getting out of the silver market before it began its major move upward. If he was really smart, he would get back in before the meteoric rise is finished. The train is about to leave the station as we touch $44 per ounce.

Comment on Magic Formula Fund Performance – First Quarter 2010 by Mikael

Mikael — Tue, 19 Apr 2011 19:03:17 +0000

Investing isn’t easy and that is why I think following a system is great. Especially for a newbie just starting out. The only concern I has is that the trading costs will eat up most of the profits unless you’re able to invest larger sums. Maybe that isn’t true but that is what I have heard every time I have spoken to a stockbroker.

/Mikael

Comment on Best IRA Mutual Funds by larry

larry — Tue, 19 Apr 2011 00:52:17 +0000

Good advice along with maintaining a balance in investment types so that you will not be blown away as the market cycles. And it is going to cycle more and more as the world economic power shifts to the east and the mideast earthquakes begin to affect the liquidity of oil.