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! :)

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.
 

The Magic Formula Portfolio 2014Q3 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 2014Q3, loss 16.09% on 1 October 2014.

On the same day, I added the following stocks to the portfolio:

Approximate 15.3% of the portfolio fund allocated equally to ETM and LQDT. 4 more stocks to go to complete build up the portfolio

Stay tune to the next quarter! :)

The Magic Formula Portfolio 2014Q2 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 2014Q2, loss 3.49% on 30 June 2014.

On 01 July 2014, I added the following stocks to the portfolio:

Approximate 25% of portfolio fund allocated equally to ONE, STRA and TZOO.

Stay tune to the next quarter! :)

Start Building Up The Magic Formula Portfolio

After finished gone through The Little Book That Beats The Market, I find out that the following Magic Formula promoted by the book author, Joel Greenblatt make a lot of sense to me:-

Buy shares in good businesses (ones with high returns on capital) but only when they were available at bargain prices (priced to give us a high earnings yield)

So I decided to give it a shoot by building up $5,000 Magic Formula Portfolio on today, April Fool of 2014. I plan to build up 12-stocks portfolio gradually by buying 3 stocks on the first market day of a quarter. For example today is first market day of quarter 2, I bought 3 stocks today. I will buy 9 more stocks on next 3 quarters and should filled up the portfolio by 1 Jan 2015.

What to Buy
I created the stock list with the following steps: 

1. Retrieve the list of stocks from http://magicformulainvesting.com/ where the market capitalization is between $88M to $1,000M ($1B)
2. Further narrow down the stocks with F-Score >= 7 by using GuruFocus.
3. Retrieve DER and DY of stocks from http://money.msn.com/stocks/. Lower DER and higher DY take precedence.

 

Today 25% of portfolio fund allocated equally to EBIX, PETS and SPRT.

When to Sell
The portfolio will be reviewed on March 31, June 30, September 30, December 31 of the year. I will sell the stocks of the portfolio which meet any criteria below:

1. The stock no longer exists in the list of stocks of http://magicformulainvesting.com/
2. There's new set of stocks created by following 3 steps above to replace the portfolio's poor performers (Sell the losers; Keep the winners.) stocks that hold more than 1 year (Validity of this criteria to be determined on 1 Jan 2015).

I'd love to hear your comments!

Happy Investing! :) 

Version History 
29 Dec 2014 Edited item 2 of When to Sell
31 Dec 2014 Edited item 2 of What to Buy. Use GuruFocus to find out F-Score instead of http://www.grahaminvestor.com/quotes/.
25 Mar 2015 Added a description of the Magic Formula

2013 Portfolio Review

Goodbye 2013, hello 2014, time is passing fast, it is time for annual review. :)

Portfolio Summary

Cost is based on market open price on 1 June 2011. 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. My US Portfolio is beating both Dow Jone 15 and Fortune 10, +16.32% and +2.92% respectively. My HK Portfolio is beating both Hang Seng HK 15 and Hang Seng Mainland 12, +8.97% and +13.68% respectively. My Malaysia Portfolio is beating FBMKLCI, +12.61%. In conclusion, my last year investment performance beating all these index funds, 2013 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

2012 Portfolio Review

Goodbye 2012, hello 2013, it is time for annual review.

Portfolio Summary

Cost is based on market open price on 1 June 2011. 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. My US Portfolio is beating both Dow Jone 15 and Fortune 10, +8.91% and +0.19% respectively. My HK Portfolio is beating both Hang Seng HK 15 and Hang Seng Mainland 12, +5.36% and +6.59% respectively. In conclusion, my last year investment performance beating all these index funds, 2012 is 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

2011 Portfolio Review

As I established Investment Yardstick for US and Hong Kong Market in June 2011, it is time for annual review.

Portfolio Summary

Cost is based on market open price on 1 June 2011. Gain/(Loss) calculation with dividends included.

It is 7 months review instead of full year annual review. From the table above, it is clear that none of the portfolio is doing well, all turn red except Fortune 10. My US Portfolio is beat by both Dow Jone 15 and Fortune 10, -2.82% and -5.08% respectively. My HK Portfolio is beat by both Hang Seng HK 15 and Hang Seng Mainland 12, -3.81% and -4.81% respectively. In conclusion, my investment performance in these 7 months cannot match with these index funds. 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