Value Investing News

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 screens.

T2's Q2 portfolio has been filed. New positions include PFE, FLIC, Y, NOC, DWA, GLD, JAVA, CMG, and LIA.

When the economy and the market starts heading south, many investors start buying Dividend Stocks. They have long been considered a defensive position in turbulent times. Given many investors recent defensive stance, one might ask how about some real defense stocks, as in the Aerospace and Defense?

Several notable companies raised their dividends last week. Dividend raises are not only getting more frequent, but they also seem to be spreading globally as well. A dividend raise in this tough environment indicates confidence in the business and the ability to generate free chas flow.

People want to feel secure. National security and the military provide assurance that a country’s citizens will be protected. Governments partner with companies like Northrop Grumman Corp (NOC) to provide the best defense products at the lowest price.

Breakdown of Magic Formula stocks by industry sector. What sectors are currently out of favor but can provide good returns on capital?

 OID interviews value investors Bruce Berkowitz and Charlie Fernandez of Fairholme Funds.

Fairholme Fund's Bruce Berkowitz latest holdings.

This short article updates readers on the latest moves by Bruce Berkowitz's Fairholme Fund. I didn't realize Leucadia has been removed from the fund's holdings until reading this article.

Putting it all together, here are the top 20 Magic Formula stocks ranked by a combination of price/sales, price/book, dividend yield, and relative strength. All of these measures have been shown to lead to outperforming stock picks.

Price-to-Book ratio is a well known value metric utilized by several notable value investors, most famously Benjamin Graham. This article shows the top 20 current Magic Formula stocks with the lowest price-to-book ratio. All 20 sell for below net asset value.

Digging into the portfolios of Berkowitz's Fairholme, Rodriguez's FPA and Mohnish Pabrai.

It's that time of year, and some of our favorite managers have just released their 13fs:

In a down market, dividend paying stocks can provide hefty yields in addition to stock price appreciation. Here are the most attractive dividend payers in the Magic Formula Investing screen today.