Reportonbusiness.com- Magic Formula Not Working
In Mid-October, Reportonbusiness.com (ROB) set up a hypothetical magic formula $1 million portfolio. The site is selecting stocks with a market of at least $500 million. The results so far? Not Good. The portfolio is down 19% while the S&P 500 is down 10%. The time frame is fairly new and ROB.com acknowledges this by saying:
That isn’t nearly long enough (3 months) to judge the merit of any investment strategy. Value investing, in particular, takes a lot of patience. We’ll keep checking back and let you know how the portfolio is making out.
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