The Magic Formula Portfolio 2015Q4 Review

Happy New Year 2016!

In 2014Q2, I started building up The Magic Formula Portfolio following the buy and sell criteria listed in the blog post titled Start Building Up The Magic Formula Portfolio.

As stated in the above blog post, I will review the performance of the portfolio quarterly. The following is the result of 2015Q4, loss 21.32% on 31 Dec 2015.

I sold the following stocks on 4 January 2016 as these three stocks no longer exists in the Magic Formula list. 

Total available investment capital is $969.28. On the 5 January 2016, I added the following stocks to the portfolio, cost $988.89, the balance of investment capital $-19.61:

Stay tune to the next quarter! :)

Which ETF? The Market Vectors Wide Moat ETF (MOAT), Let's Me Tell You Why

The author published the analysis report here is for his own reference only. It is not an indication of the author's business interests for companies or funds being analyzed. It is definitely not an investment advice, please see the full disclaimer located at the bottom of the blog post.

In the page of 122 of Why Moats Matter book, I discovered the Morningstar Wide Moat Focus Index (MWMFT) has generated annualized returns of 15.9% versus 8.8% for the S&P 500 since its inception on Sep 30, 2002 through Sep 30, 2013.

Let's see some real comparison on the following ETFs (To be exact, WMW is an ETN)

• SPDR® S&P 500® ETF (SPY)
• ELEMENTS Morningstar WideMoat Focus Total Return ETN (WMW) - the ETN is chosen in this comparison as it has the longest track record of ETF-type of fund in the market

View Latest Chart Data

Still not impressed? Let's me show you the money! See the following chart for how much your $10K grow if you invested into WMW since its inception:

Source: Morningstar

Okay, WMW is used for comparison purpose only, I would like to introduce you the real ETF that tracked MWMFT: Market Vectors Wide Moat ETF (MOAT) which commenced on Apr 24, 2012. Personally, I'm favored MOAT over WMW due to credit risk and lower expense ratio (0.49% - 0.5% vs. 0.75%), you can find out more about ETF vs ETN here. If you still worry MOAT is not as good as WMW, please see the following chart:

View Latest Chart Data

What is MOAT? Please see the following short description and growth performance chart extracted from the MOAT's fact sheet (click the link to see the latest data)

You can find out more about MWMFT by viewing the longer description I extracted from Prospectus of MOAT here.

Please let's know if you found US-focused ETF that perform better than MOAT.

Thanks for reading till the end, I hope the writing above benefit you and worth your reading time.

I'd love to hear comments from you! :)

The Magic Formula Portfolio 2015Q3 Review

In 2014Q2, I started building up The Magic Formula Portfolio following the buy and sell criteria listed in the blog post titled Start Building Up The Magic Formula Portfolio.

As stated in the above blog post, I will review the performance of the portfolio quarterly. The following is the result of 2015Q3, loss 18.2% on 30 September 2015.

I sold the following stocks on 30 September 2015 as these three stocks no longer exists in the Magic Formula list. 

Total available investment capital is $999.70.  On the 1 October 2015, I added the following stocks (NLS and VNCE) to the portfolio, cost $631.10, balance of investment capital $368.6:

Stay tune to the next quarter! :)

The Magic Formula Portfolio 2015Q2 Review

In 2014Q2, I started building up The Magic Formula Portfolio following the buy and sell criteria listed in the blog post titled Start Building Up The Magic Formula Portfolio.

As stated in the above blog post, I will review the performance of the portfolio quarterly. The following is the result of 2015Q2, loss 11.29% on 30 June 2015.

I sold the following stocks on 30 June 2015 as these three stocks no longer exists in the Magic Formula list. 

Total available investment capital is $1,151.22.  On the 1 July 2015, I added the following stocks (CLCT, MSB and RPXC) to the portfolio:

Stay tune to the next quarter! :)

The Magic Formula Portfolio 2015Q1 Review

In 2014Q2, I started building up The Magic Formula Portfolio following the buy and sell criteria listed in the blog post titled Start Building Up The Magic Formula Portfolio.

As stated in the above blog post, I will review the performance of the portfolio quarterly. The following is the result of 2015Q1, loss 4.63% on 2 Apr 2015.

I sold the following stocks on 6 Apr 2015 as the first three stocks no longer exists in the Magic Formula list and TZOO is the greatest loser.

Total available investment capital is $1,811.  On the 7 Apr 2015, added the following stocks to the portfolio:

Stay tune to the next quarter! :)

2014 Portfolio Review

Happy 2015! Time is passing fast, it is time for annual review. :)

Portfolio Summary

Cost is based on market open price on 1 Jan 2013 except My Malaysia Portfolio.
Gain/(Loss) calculation with dividends included.

From the table above, it is clear that return of all portfolio items are decent compare to last year except My HK Portfolio. My US Portfolio is beating both Dow Jone 15 and Fortune 10, +21.57% and +9.45% respectively. My HK Portfolio is lossing both Hang Seng HK 15 and Hang Seng Mainland 12, -14.39% and -3.65% respectively. My Malaysia Portfolio is beating FBMKLCI, +33.2%. In conclusion, my last year investment performance achieved decent return, 2014 is definitely a good year to me :). Please see tables below for detail of each index fund.

US Market
Dow Jones 15

Fortune 10

Hong Kong Market
Hang Seng HK 15

Hang Seng Mainland 12

The Magic Formula Portfolio 2014Q4 Review

In 2014Q2, I started building up The Magic Formula Portfolio following the buy and sell criteria listed in the blog post titled Start Building Up The Magic Formula Portfolio.

As stated in the above blog post, I will review the performance of the portfolio quarterly. The following is the result of 2014Q4, loss 1.79% on 31 Dec 2014.

I sold the following stocks on 31 Dec 2014 as they are no longer exists in the Magic Formula list. 

Total available investment capital is $2,689.65 ($1,795.47 from the balance of investment capital, $20.49 from total dividend received from EBIX and PETS in 2014, and $873.69 from proceeds of sold stocks).  On the 2 Jan 2015, I will add the following stocks except NHTC (as it is an OTC/unlisted stock) to the portfolio:

At this point, it is considered the completion of the build up of the Magic Formula portfolio.

Stay tune to the next quarter! :)

Note (edited on 3 Jan 2015):
6 stocks above added to the portfolio successfully.