Adventures in "Magic Formula" Investing

About a year ago, while browsing the business books at Borders, I came across "The Little Book That Beats The Market" by Joel Greenblatt. The premise was nothing new (that you can regularly outperform the market), but his method and approach (using two relatively simple measures of performance and price) intrigued me, and I saw it as an opportunity to use what I was learning in my Finance classes.

Using FolioFN, a discount broker that allows for partial stock trades (buying just $25 of Google stock for example), I started using the formula. A year later, I'm pretty impressed with the results.

I found myself telling more and more friends and family about the book, so I started this blog as a way to share my experiences with them, and anyone else interested.

You can view my current holdings here, but keep in mind there are a few deviations from the book's approach:

• I own some Google stock alongside the MFI (Magic Formula Investing) stocks. I've since been purchasing Google in a separate brokerage account.
• It also includes some (very very little) in Bankrate.com. The impact on overall performance from this one is negligible.

Finally, here's some fine print:

Please note that I am not a registered investment advisor or broker/dealer. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. I can't be liable for any loss or damage caused by your reliance on any of the information from this blog/site. You are solely responsible for your own investment decisions.