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Online Share Trading

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My Magic formula portfolio

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Not applicable
On average 49% up since buying in July/August last year. Eat that Mr Simon Poynting Brown unbeliever. The only difficult part is going to be selling the shares after a year.
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26 REPLIES 26
SimonPB
Valued Contributor
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saash
Super Contributor
A system's not a system until there are entries and exits with a trading history of profits actually achieved imo - but sure, lets hear yours! I like stealing a few ideas from other people's systems to improve my own silly system.
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jack12
Super Contributor
damm, I suppose that blows my 160% out of the water. My long term portfolio is up 45% over the same period.
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AJT
Super Contributor
I must be doing something very wrong as i am nowhere near these figures...
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Not applicable
It follows the strategy of a book "Little Book that beats the Markets" by Greenblatt that was punted on Simon's show. It's a long term investment strategy that ranks shares by EY and ROCE and then you are free to pick the top x and hold for a year. Last year when I quoted how well this strategy bactests on the JSE, Simon made sounds in the back of his throat and said something about "does it come with milk cookies". Well, you are free to swallow or toss them cookies, Simon. Oh yes, my 49% excludes the dividend payouts I have received so far as well.
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Shaun_Siddall
Super Contributor
I think if you were not up since then you should rather give up.
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AJT
Super Contributor
Did not say i was not up, just said i was not 49% up....
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Not applicable
As SBSA does not allow for us to have multiple portfolio's I have other shares in my SBSA portfolio as well not purchased according to the formula that has done average to say the least, like Sasol. But it was the MF picks that shined.
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Galuc
Super Contributor
Dont feel alone ajt i am not up there either!
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SimonPB
Valued Contributor
you can have 99 portfolio's, no extra costs .. but what we really care about, what was the share ??
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Not applicable
Yeah very funny Simon. I bought the top 2 companies on the list, Kumba and Assore, so a couple more included might have given me an average lower return. I'll go check tonight what the top 5 would have averaged. Assore is still one of the most cash generative companies today if compared to capital employed.
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SimonPB
Valued Contributor
not sure of the joke .. but you can have multiple portfolios ..
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Not applicable
Your referral to share in the singular. So I've gone through the education section. Still trying to find out how to split portfolios.
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Not applicable
Your referral to share in the singular. So I've gone through the education section. Still trying to find out how to split portfolios.
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SimonPB
Valued Contributor
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Blik
Super Contributor
@ Vitorc - I split my portfolio very easily - just e-mail SFM and let them know which shares you want to transfer, if any, and they will move the holdings across at no cost. They will also move them back to original account as well.
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Not applicable
Thank you Simon & Blik. Have mailed them. Anyone interested in how I rank the top magic formula candidates using the Share filter on this site can pop an email to [email protected]
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Enzed
Frequent Contributor
Is there a difference between ROCE & ROC?? Should the Magic Formula not be lowest PE & Highest ROC ??
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Not applicable
ROCE also takes a company's debt into consideration. According to the book its EY and ROC, but I think P/E and ROCE might bring you very close to the same point.
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