Performance Of The Magic Formula Portfolio

Magic Formula Portfolio

Here’s what the portfolio owns and its returns so far:

Stock 1:

– Company Name: magicJack VocalTec Ltd (NASDAQ:CALL)

– Ticker Symbol: CALL

– Shares Purchased: 163

– Buy Price: $6.10

– Buy Date: 6/1/16 (closing price)

– Current Price: $7.25 (closing price on 12/8/16)

– Reinvested Dividends: None

– Total Investment: $994.30

– Current Balance: $1,181.75

– Return: 18.85%

Stock 2:

– Company Name: HP Inc (NYSE:HPQ)

– Ticker Symbol: HPQ

– Shares Purchased: 77

– Buy Price: $12.85

– Buy Date: 7/7/16 (closing price)

– Current Price: $16.16 (closing price on 12/8/16)

– Reinvested Dividends: 0.64 shares

– Total Investment: $989.45

– Current Balance: $1,253.95

– Return: 26.73%

Stock 3:

– Company Name: RMR Group Inc (NASDAQ:RMR)

– Ticker Symbol: RMR

– Shares Purchased: 27

– Buy Price: $36.52

– Buy Date: 8/12/16 (closing price)

– Current Price: $42.20 (closing price on 12/8/16)

– Reinvested Dividends: 0.17 shares

– Total Investment: $986.04

– Current Balance: $1,146.57

– Return: 16.28%

Stock 4:

– Company Name: PDL BioPharma Inc (NASDAQ:PDLI)

– Ticker Symbol: PDLI

– Shares Purchased: 315

– Buy Price: $3.17

– Buy Date: 9/16/16 (closing price)

– Current Price: $2.20 (closing price on 12/8/16)

– Reinvested Dividends: None

– Total Investment: $998.55

– Current Balance: $693.00

– Return: -30.60%

Stock 5:

– Company Name: Chesapeake Granite Wash Trust (NYSE:CHKR)

– Ticker Symbol: CHKR

– Shares Purchased: 454

– Buy Price: $2.20

– Buy Date: 10/21/16 (closing price)

– Current Price: $2.25 (closing price on 12/8/16)

– Reinvested Dividends: 16.92 shares

– Total Investment: $998.80

– Current Balance: $1,059.57

– Return: 6.08%

Stock 6:

– Company Name: Gilead Sciences, Inc. (NASDAQ:GILD)

– Ticker Symbol: GILD

– Shares Purchased: 13

– Buy Price: $74.87

– Buy Date: 11/29/16 (closing price)

– Current Price: $72.02 (closing price on 12/8/16)

– Reinvested Dividends: None

– Total Investment: $973.31

– Current Balance: $936.26

– Return: -3.81%

Portfolio:

– Starting Balance: $10,000.00

– Invested Balance: $6,271.49

– Cash Available to Invest: $4,059.55

– Current Balance: $10,331.04

– Total Return: 3.31%

Strategy Rules

Sign in to your premium account to review the strict “buy” and “sell” rules followed by this strategy.

Shadow Stock Portfolios

As discussed here, The Stock Market Blueprint is building and tracking a Shadow Stock Portfolio for each Premium stock screen featured on the site.

The purpose of the shadow stock portfolios is to show investors how systematic investment strategies can be implemented using the stock screens featured on TheStockMarketBlueprint.com.

Additionally, the Shadow Stock Portfolios are establishing track records for the strategies being implemented. These records provide actual investment results in real-time.

Magic Formula Description

The Magic Formula® is Joel Greenblatt’s successful attempt to quantify Warren Buffett’s principle of buying good companies at bargain prices.

This strategy equally ranks companies based on return on capital and earnings yield.

By combining the top ranked stocks based on both metrics, the screen finds stocks that are highly profitable yet trading at low prices.

See a more detailed explanation of the screen here.

Build Your Own Portolio

By investing blindly based on what stock screens tell you to (1), rule-based investment strategies eliminate human emotions from the decision-making process.

Follow along every week to see the performance of a different featured Shadow Stock Portfolio. Each strategy is highlighted every eight weeks.

If you’re a Premium subscriber, you can follow along in real-time as well as implement the strategies yourself.

Note: Mitchell Mauer is the Founder of TheStockMarketBlueprint.com. The Stock Market Blueprint is a site that finds value stocks for investors building long-term wealth. The site’s investment philosophy is anchored in principles established by Benjamin Graham and his most reputable followers over the last 100 years.

Additional Links:

(1) https://www.thestockmarketblueprint.com/investment-strategy-buy-stocks-blind/