As of this writing, the Magic Formula Investing Portfolio that I have been covering this year is up 26.18%*:
According to the formula, I will make the fourth and final purchase today. So far this year, I have made three purchases of $2,500 each. This final purchase will be the last purchase until January 2008 at which time I will run the screen again and sell those stocks purchased in January of this year. The staggered purchases will make bookkeeping a little more tedious but it won’t be that bad.
Anyway, I’ll let you know which stocks were chosen in the last batch tomorrow. Stay tuned…
Other Magic Formula posts:
*This is a hypothetical portfolio that started out with $10,000. The annual fee of $199 is the same regardless of portfolio size. However, since we are dealing with a relatively small account balance, the $199 fee is rather large fee on a percentage basis. That said, the YTD return on the portfolio net of fees is 23.52%.