It seems about all the major trading platforms now have commission-free trades. Even Vanguard brokerage accounts now have them. The only possible downside of free trades that I can see would be that undisciplined investors now have no incentives to restrain from over-trading. They may do even less research and have even less commitment to their investment decisions. Overall, … [Read more...] about Effect of Commission-Free Trades on the Magic Formula Portfolio
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Papa Murphy’s Merger
As I've written before, anyone following the Magic Formula strategy has the responsibility to keep an eye on the portfolio. Today this revealed that, on May 28th of this year, there was a merger of Magic Portfolio company Papa Murphy (FRSH) with MTY Food Group, which I've never heard of. Come to think of it, I've never heard of Papa Murphy's either. I replaced this with Magic … [Read more...] about Papa Murphy’s Merger
The Stickiness of Formula Stocks
I am now in the third round of choosing my Magic Formula Stocks. The first round started in late December 2016, when I bought thirty Magic Formula stocks over a period of a couple months. Around the same time last year I began the process of selling all those stocks and replacing them with other stocks as identified on MagicFormulaInvesting.com. Now here I am again, still happy … [Read more...] about The Stickiness of Formula Stocks
Re-balancing your Magic Formula Portfolio
One of the guidelines for constructing your Magic Formula portfolio, as described in The Little Book that Beats the Market, is that each of your 30 stocks should have equal weighting. So after a sale you can’t just invest all the proceeds; you have to calculate how much you should invest in your next Magic Formula stock so the portfolio will be well-balanced. This re-balancing … [Read more...] about Re-balancing your Magic Formula Portfolio
Stock Spin-off: TEGNA (TGNA) and Cars.com
Another eventuality that must be considered when following the Formula but is not covered in The Little Book that Beats the Market is a Stock Spin-off. This is when a company divests in some part of the company, "spinning off" a separate company that, in this case is publicly-traded and is represented by a different stock symbol. TEGNA shareholders received shares of spun-off … [Read more...] about Stock Spin-off: TEGNA (TGNA) and Cars.com