My Approach

So, before I can talk about performance, you'll need to know how I'm approaching this. I typically buy 5-7 stocks each quarter and allocate equal amounts to each stock. Per the Magic Formula strategy, I intend to hold them for a year and then sell them. However, I keep open the possibility of selling positions before the year is up if the gains are significant. Since I am holding these stocks in a tax deferred account, I don't have to consider short-term/long-term tax implications.

I created my first portfolio in February 2006. I didn't create a portfolio in the next quarter due to a lack of time to do proper analysis, but I did create one in August. I group by 'portfolio' for tracking purposes. So without further adieu, here are my two existing portfolios.

Portfolio 1: ANIK, EGY, KG, ITWO, PWEI, UST, PWEI
Portfolio 2: AGYS, ASEI, ASPV, FDG, PNCL, UNTD

In my next post, I'll discuss the performance of each portfolio.