I was under the impression that the book talk to sell all of their stocks after being held for one year. That is detailed at the end of the book. It even says to sell the gainers a few days longer than one year and the losers a few days shy of a year
Thanks for the analysis! I am running a mock-portfolio on the Wall St. Survivor platform to test TMF in real time, month by month (Also an Acquirer's Multiple mock-portfolio). Seeing similar results of low single digit gain so far, only 1 year of data though. Your Tickernomics version of TMF picks is very helpful to see. I tried matching TMF in my screeners but found a lot of differences too.
Thank you for this information. Im curious about the results if you limited it to companies with a larger market cap, say 500m or so, or by companies that offered a dividend. In any case, great video.
The magic formula has underperformed since about 2013. Not surprising... All of those strategies start to underperform as soon as the crowd starts trying them..
Thank you. I enjoyed the topic. Wondering since this was about a year old and you suggested it might be a one off. How is magic formula doing now? Also after seeing the acquirer's multiple, was wondering how stocks on both list did if one invested in only those companies.
Are you sure that the stock price data that you're using is correct? I'm not familiar with many of these stocks, but notably the prices for nexstar and quest diagnostics look incorrect. Nexstar is a stock I own and I was confused as to how it could be the biggest loser as it has been a good performer for me and is up quite a bit in the last 5 years.
The stock prices are correct. But I noticed after I made this video there was an issue with the code I used to order the list. So the numbers are correct, they're just in the wrong column and need to be shifted down 1 or 2 rows to align with the right company. We've since corrected this.
I have kept the mfi stocks for the last 3 years in virtual portfolio that I coded in python. I also have bad returns. The portfolio is down a lot. I will keep doing it for the next 10 years just for fun. Nobody is able to generate Joels numbers.
What’s wrong with me using the magic formula on the stocks I see as having potential within energy (I’m an energy professional (my circle of competence) and using the magic formula to rank those companies against some of their peers? E.g. solar, hydrogen, steel, shipping stocks. Thanks for making a video about my suggestion!
The issue is applying something that's a portfolio strategy to individual companies. Assuming that's the only reason you're buying them. But if you're also using the 2 magic formula metrics as data points along with other factors then I personally don't see an issue with it
Your website looks very cool, where do you guys get your data (how's the missing data treated ? filled with sector average ? Interpolated ?) ? Is it possible to implement a dark mode ? Thanks
Thanks! We use a commercial API and also extract XBRL data. For missing data we usually don't do anything but at this point most of the critical data is there for financial statements. Dark mode is something we could look into...
the formula didn't work on your side, because your website doesn't have a consistent database for stock financials. After I compared your financial data with sec.gov. there are periods when you don't have the same data, so with inconsistent data, you can't backtest it properly, kind regards
What was inconsistent? I have tested our data accuracy and have not noticed issues like this. If you could give a company as an example that'd be useful
I had to comment on this because it seems so obvious that your data set is too small that I had to question if it’s was intentional. Summary. You beat the market 4 years. You lost a lot year 5 about the same as the S&P 500. What happens when you run another 10 years?
I was under the impression that the book talk to sell all of their stocks after being held for one year. That is detailed at the end of the book. It even says to sell the gainers a few days longer than one year and the losers a few days shy of a year
Thanks for the video. I liked how you structured it and explained the book content along with your personal opinions. Greetings from Germany
Thanks for the analysis! I am running a mock-portfolio on the Wall St. Survivor platform to test TMF in real time, month by month (Also an Acquirer's Multiple mock-portfolio). Seeing similar results of low single digit gain so far, only 1 year of data though. Your Tickernomics version of TMF picks is very helpful to see. I tried matching TMF in my screeners but found a lot of differences too.
Would be interesting if you ran a backtest focusing just on high ROIC, and historical revenue growth.
I’m doing this. In real life. Feel free to follow along I publish letters quarterly!
Thank you for this information. Im curious about the results if you limited it to companies with a larger market cap, say 500m or so, or by companies that offered a dividend. In any case, great video.
The magic formula has underperformed since about 2013. Not surprising... All of those strategies start to underperform as soon as the crowd starts trying them..
It’s great he simplified investing but nothing is certain. If it was that easy we would all be rich.
Thank you. I enjoyed the topic. Wondering since this was about a year old and you suggested it might be a one off. How is magic formula doing now? Also after seeing the acquirer's multiple, was wondering how stocks on both list did if one invested in only those companies.
Are you sure that the stock price data that you're using is correct? I'm not familiar with many of these stocks, but notably the prices for nexstar and quest diagnostics look incorrect. Nexstar is a stock I own and I was confused as to how it could be the biggest loser as it has been a good performer for me and is up quite a bit in the last 5 years.
The stock prices are correct. But I noticed after I made this video there was an issue with the code I used to order the list. So the numbers are correct, they're just in the wrong column and need to be shifted down 1 or 2 rows to align with the right company. We've since corrected this.
So this script is ok now? @@investingsucks
You do the test that i begin to look. You unscrew if that test is valuable. Tank you .
I have kept the mfi stocks for the last 3 years in virtual portfolio that I coded in python. I also have bad returns. The portfolio is down a lot. I will keep doing it for the next 10 years just for fun. Nobody is able to generate Joels numbers.
What’s wrong with me using the magic formula on the stocks I see as having potential within energy (I’m an energy professional (my circle of competence) and using the magic formula to rank those companies against some of their peers? E.g. solar, hydrogen, steel, shipping stocks. Thanks for making a video about my suggestion!
The issue is applying something that's a portfolio strategy to individual companies. Assuming that's the only reason you're buying them. But if you're also using the 2 magic formula metrics as data points along with other factors then I personally don't see an issue with it
Your website looks very cool, where do you guys get your data (how's the missing data treated ? filled with sector average ? Interpolated ?) ? Is it possible to implement a dark mode ?
Thanks
Thanks! We use a commercial API and also extract XBRL data. For missing data we usually don't do anything but at this point most of the critical data is there for financial statements. Dark mode is something we could look into...
would be nice if you test with the original magic formula web list, see how it goes, thanks!
Proper channel title 😂
Hello. Hey can you do an update on your site stock screener?
Can you put free cash flow to equity, and free cash flow to the firm?
FCFF is there, it's called mmUnleveredFreeCashFlowAnnual, which the the same thing as FCFF. I can look into adding FCFE
@@investingsucks thanks I'll check out later
the formula didn't work on your side, because your website doesn't have a consistent database for stock financials. After I compared your financial data with sec.gov. there are periods when you don't have the same data, so with inconsistent data, you can't backtest it properly, kind regards
What was inconsistent? I have tested our data accuracy and have not noticed issues like this. If you could give a company as an example that'd be useful
I had to comment on this because it seems so obvious that your data set is too small that I had to question if it’s was intentional.
Summary. You beat the market 4 years.
You lost a lot year 5 about the same as the S&P 500.
What happens when you run another 10 years?
Would have to check that. We have a backtesting tool created now that would allow you to run that specifically
@@investingsucksdo you have the link to the tool?
Backtesting feature on my website - Tickernomics.com
I like the ideer of TMF. But I will not use it.
ur cute