The Little Book That Beats The Market

ext: https://www.magicformulainvesting.com/Screening/StockScreening

Formula

  • Buy 5-7 of the top-ranked companies, investing 20-33% of your portfolio into them
    • Repeat every few months until you have invested all of the money
    • (7 stocks every 3 months or 5 stocks every 2 months)
  • Sell each stock after holding for 1 year, sell losers before 1-year period, winners after
    • Replace the companies with an equal number of new selections, use new contributions for this too
  • Commit for 3-5 years
  • You can also use Return on Assets or P/E to screen, but ignore <5 P/E and companies with earnings announced last week