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Strategies & Market Trends : Greenblatt's Little Book That Beats The Market

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To: Paul Senior who wrote (133)2/3/2007 7:45:38 AM
From: Bananawind  Read Replies (5) of 218
 
I set up a portfolio yesterday using the magic formula strategy. This is my first attempt with this strategy. I started with a listing of 100 stocks with market cap > 100 million and narrowed the list down to 12 by choosing only S&P Buy or Strong Buy stocks. I then further narrowed the choice down to 5 stocks by using a combination of price/target along with a couple of longer term technical indicators and purchased the following stocks for the next 12 months:

BLDR
CECO
FCX
PACR
WDC

The combined difference of the current price to S&P 12 month target price for these stocks is 22%. I'm anxious to see how that compares to the actual results a year from now.

Kevin
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