The Motley Fool Discussion Boards
Investing Books / Magic Formula Investing
|Subject: October 2012 CAPS selections on TrackJGreenblat||Date: 10/15/2012 10:52 AM|
|Author: ZiggyDawg||Number: 2273 of 2373|
There was talk recently on this board about enhancing the formula by adding other metrics to the selection process. I believe that for most investors this will likely hurt results. It helps to remember that the formula generates a list of good companies selling at a good price. However, "Good" does not connotes warm and fuzzy so a sizable part of the list consists of perceived stinkers that were dumped by the market. The upside is that any inkling of good news can generate sizable price movements that on average will go your way.
CAPS ranks a player as if they were advisers recommending an investment. Accuracy factors for 1/3 of a players' rating. For the individual investor, the score is what counts. Since mid 2006 when the TrackJGreenblatt CAPS page was set up the results were impressive:
TrackJGreenblatt's rating is 77.42.
Score: 790.09 (88th percentile)
Accuracy: 47.67% (43rd percentile)
A player's rating indicates his percentile rank in CAPS. TrackJGreenblatt is outperforming 77.42% of all CAPS players. A player's score is the total percentage return of all his picks subtracting out the S&P. A player's accuracy is how often that player has made correct predictions.
October 15, 2012
Every two months we* generate a list of the top 30 stocks that have at least a $100 million market capitalization. We use Joel Greenblatt's MFI site at www.magicformulainvesting.com to generate the list.
Resulting tickers are copied into www.random.org/lists/ to randomly rank the companies from 1-30 and select the first 5 stocks.
If a stock already appears on TrackJGreenblatt CAPS page or is unavailable as a CAPS pick, the next stock on the list will be chosen.
The resulting selection of 5 stocks is entered into Joel Greenblatt's CAPS page.
Stocks will be held for one year then sold.
October 15, 2012 MFI top 30 Over 100mm mkt cap (List already randomized):
There were 30 items in your list. Here they are in random order:
1. UTSI - Pick #1
2. WCRX - Pick #2
3. GNI - Pick #3
4. PDLI - Pick #4 (Randomly re-selected for one more year)
5. MSFT - Pick #5
Timestamp: 2012-10-15 14:15:46 UTC
*Profile is managed by member ZiggyDawg.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|