Magic Formula Portfolio Update (2020 RECAP)

Latest update on your magic formula portfolio?

The site should have listed the stocks by ranking NOT alphabetically. Total bullshit

You made it simple to understand. Thanks!

Hi Rose! Thanks for sharing all this! I’m curious if you sold the new batch in Jan 2022 and what ur experience was doing the 1 year batch vs every few months.

Just a little hint for you ... you can place alerts by implementing an ''App Script'' in your spreadsheet to send you an email when you have to replace your stock for a certain date.

Can we get another update on how your magic formula portfolio is performing?

Hey Rose we need a magic formula update for this year!

How's the magic formula working now?

How has the magic formula been working since this video?

Great video, thanks. Studying this method now, and this helps.

It's now May of 2022. Do you have an update to your portfolio?

How’s this investing strategy in this crashing market? Still good to continue?

Let's see the P&L for 2022! Is there a more recent video?

The book advises, instead of picking stocks randomly, that the investor could also rank the stock according to their return on capital and their earning yield. Did you do that step or did you opt for the random approach ? @Investing with Rose

Is it time for an update?

Hi! Are you planning on making an update video on this topic? It would be great to know if its working for you

Are you getting dividend on some of these stock.

Im guessing next update will be next month. Im looking forward to it cause I might try it out this year now that I have a job.

I couldn't find the 55%

When you have time, could you compare this magic formula to The Acquirer's Multiple?

Rose, regarding the portfolio you held during the 1st wave of the pandemic, I kinda wonder what could be the outlookif you were buying those positions a quarter earlier or later (and liquidated a quarter earlier or later, respectively). I am sure this is "emotions-talking", but I am curious if you did this exercise.

BTW, excellent content :)

fascinating. was thinking about experimenting with this strategy thanks for sharing your journey so far! question about selling at a loss and buying back vs not selling: if you sell at a loss wouldn't there be a tax benefit? if you just hold do you get the same benefit?

Would you say that most of the work is done in the first year since you're buying stocks every three months? I like how you said you'd rather do it once a year but that's after you have all 30 stocks, correct?

Hopefully the loss on the stocks were enough to offset the tax on the gains of the successful stocks.

In Brazil there is academic researchs that show the efficiency of Magic Formula. Part of my portifolio (40%) is just magic and this part is responsible for my performance that beat the brazilian index (IBOV).

Can you do 2021 review please!

We need magic formula ETF. :D

aren't you compromising the magic formula strategy switching to a yearly rotating? A bit confusing your statement, would be great if you could clarify. Otherwise: best content in your channel, super easy to understand. Thanks doing this

Hi Rose. Do you think that it would be possible to avoid the huge drawdown like you had with ACOR, by avoiding microcaps and cyclical sectors (pharmaceuticals, shipping etc)?

Hi Rose! I’m a new subscriber and just loving your content, i’ve already learnt so much.

I have come across your videos on the magic formula and I have a few questions! So i’m loving the idea and it makes sense to me, but with brokerage fees and fees itself attached to these brokers, do the gains offset the fees charged? I live in Australia and for one broker im using, brokerage fees for each trade is $5, so all up buying and selling the 21 stocks would cost $105.00 a year, or another broker im considering has zero brokerage fees but has a foreign exchange rate of 0.07%, does the magic formula work with these types of fees, am I missing something?

Also, i don’t have a crazy amount of money to invest so is there a minimum amount to get started with the magic formula, i’m looking at $6000 across 21 stocks which will result in have $286 worth of shares for each stock. Is that too small to start with and should look to do using another strategy?

Thank you Rose!

Updates?

Hi Rose
Can I purchase all 30 suggested stocks at a time from the magic formula screener? This way I don’t have to keep track of different batches of stocks.

New content idea: Update your magic formula performance for 2021! interested to see how it did

Damn!!! Your whole video is just a scam! Arna was never below 20 bucks ever since corona started. How tf did you buy it at 14 bucks??

Honestly not that cumbersome to sell 5 stocks every 3 months.

There's no way I'd have sold at the bottom of the covid crash.

Why did you decide to go for small cap stocks?

Is there a particular time you start this strategy or do you start now and just check back in a year?

You have to follow the formula to give a valuable opinion or review. I also don't understand how you can have a YT channel on INVESTING, yet selling/buying a handful of stocks 3 or 4 times a year is too much because of COVID or whatever. That blew my mind.

has this been back-tested? It seems like a crappy way to lose out on excellent growth stocks

Well done

Rose, there is no magic about investing. Investing in a "magic list" is just foolish. Buying a stock is not loke buying a lottery ticket. Research the company and its value. Buying a stock ofma company which makes money and grows is the only way to invest. "Some stocks will go to s..." is not investing. It is gambling.

Really appreciate the idea. Having any kind of formula is better than no formula or reading a bunch of prospectus that use so much information that it's difficult to discern anything useful. Due to the markets being so rich, I'm not really big on going all in at once during this time period. Also this method seems to be like picking value stocks which allows to purchase on the cheap or not. Personally, I grew up with guns so I'll scoop those that you missed.

ARNA stock doesn't match up. It was $38 at the lowest when the market crashed. You MCFT price did match up though. The last time ARNA was $13 was back in 2017. And the lowest ACOR has been in the past 52 weeks has been $2.53. Not sure if you meant another price?

I love how honest you are.

VTI did better, it had a gain of 70% as of today, from the lowest point of the covid crash.

I'm not sure about this formula. Why is there Cisco systems with market cap over 200 billions and other large companies? So the bottom line is 50-100 millions, but an upper bound is 200 billions. It seems so high, why is that? So the formula can't find 50 great companies with cap in a range from 50 mlns to a 10 billions (for example)? It's strange.

I like this channel for it’s straight forward and sensible advice. Not too sure about this method however. First of all the gimmicky name makes it sound like a late night infomercial. Lol. But basically it sounds like a homemade value fund, which have underperformed the market for many years now. Plus 2020 is going to be an outlier year that skews results due to the huge crash followed by a short, outlandish recovery. Her portfolio shows a 55% gain but an s&p fund shows 60%+ gains on the year. Meanwhile it might take a decade to evaluate if this method truly delivers on the promised 20% annual returns. If it fails, that’s a lost decade from which there is no recovery. I much prefer dollar cost averaging into a sensible, low fee fund over 30 years. That is a proven method to gain wealth. To each their own though.

great job Rose. Thanks a lot. I called you " girl different " because most of girls concentrate on stupide stuff in general plus they like to spend money or keep money because they afraid to invest . so happy there is girl like you ( with men mind : ) ) . good luck.