Value Investing News

Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.

I am a firm believer that asset allocation plays a significant part in a portfolio’s long-term results. Recently, I received a question asking if you could have a diversified portfolio of dividend stocks. It is an interesting question that deserves further examination.

The latest report on the performance of the Fat Pitch Financials Value Portfolio hosted at Marketocracy.

Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.

The dividend aristocrats list includes companies which have increased dividends for over 25 years in a row. It is equally weighted and re-balanced once an year. Over the past 3,5 and 7 years the index of elite dividend stocks has managed to outperform the S&P 500 by 5%, 3.7% and 4.40% respectively.

The FPF Value Port outperformed the market in 2009, returning 42.44% versus just 26.47% for the S&P 500.

Weekly roundup of stocks moving in and out of Joel Greenblatt's Magic Formula Investing screen.

Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.

Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.

The stock market has been on a consistent bull run since it hit a low in March 2009. As stocks keep hitting new highs for the year however, buyout by the prospect of economic recovery, many value investors are getting nervous about valuations. The P/E ratio on the S&P 500 for example has risen to its highest levels in several years.

This is an update on the performance of the Fat Pitch Financials Portfolio. The portfolio at the end of October was beating the S&P 500 by an annualized 2% since inception in 2004.

Weekly roundup of stocks moving in and out of the Magic Formula Investing screen.

The inner workings of the Magic Formula statistics remain a closely guarded mystery. Here are 4 stocks that appear to meet the MFI criteria but for some reason do not show up on the official screens.

Most companies use debt for a variety of reasons in their operations. It could be either short term or long-term obligations. If there’s anything the 2007-2009 financial crisis has taught us, it is that excessively leveraged companies could easily blow up after a chain of negative events. Thus it pays to know what the debt situation for a particular company you are investing in actually is.

Dun & Bradstreet provides credit information on thousands of companies, as well as supplier and marketing data. This 160 year old company has a wide moat and strong cash flow, and makes a good conservative choice for a Magic Formula portfolio.