Please save your comments on my failure to follow the "The Little Book That Beats the Market" for my next post. Hopefully, you achieved a 30% IRR this past year. Please comment on the IRR of your MFI portfolio if you maintain one. Thank you. Merry Christmas and Happy Holidays.
Friday, December 29, 2006
4th Quarter Performance Update
Well, it has been an interesting Magic (Formula) carpet ride this year. I did and absolutely horrible job following instructions and my results are poorer for it, but I will save my analysis of my mistakes and lessons learned for my next post. This update is about my results 01/11/2006 -12/29/2006. Basically I would have been better off putting my money in the SP500 as I trailed that index ever so slightly. Please keep in mind the return represented by the two benchmarks represents purchases made at the closing price on the same day as my MFI purchases. 
Please save your comments on my failure to follow the "The Little Book That Beats the Market" for my next post. Hopefully, you achieved a 30% IRR this past year. Please comment on the IRR of your MFI portfolio if you maintain one. Thank you. Merry Christmas and Happy Holidays.
Please save your comments on my failure to follow the "The Little Book That Beats the Market" for my next post. Hopefully, you achieved a 30% IRR this past year. Please comment on the IRR of your MFI portfolio if you maintain one. Thank you. Merry Christmas and Happy Holidays.
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5 comments:
I have a question. For the 2 criteria.
1. High past ROC
2. High yield = Low P/E (price is current while earning is from the past)
This filter will result in companys that has good past return and doing quite bad now or expected earning. That's why people are dumping the stock, thus low P/E.
Good stuff Nick. The dichotmy of your results is amazing. stocks like FDG, RAIL & ALDA have been horrible, while AEOS, UST & MVL have been great. I do hope you include dividends in your numbers as that is critcal for FDG. We did mirror each others results.
MG
I have been doing the same as you. But then for the European Market.
I analyse the stocks from Euronext Deutsche Börse and London Stock Exchange.
I created the blog to make myself stick to the Formula as I was drifting off 2.
If your intrested you can find it here.
Investingeuro.com
@justadrone
Interesting is to look at the overlapping factor of these. ALL three companies have something special or durable competitive advantages (like brands, distribution power, etc.),
Success in investing,
Hendrik Oude Nijhuis
www.magicformulastocks.com
Thanks for your comments.
MG I do include dividends.
Izual, thanks for the link and good luck.
Hendrik, a wide-moat is always important. The incredibly high ROIC that these companies have is frequently an indicator of a competiive advantage, the trick is determining the durability of the advantage. You have been quite busy promoting your site, good luck.
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