MFF1: EBAY, CALM, CF
MFF2: EBAY, WFR, KBR
I was a bit late in picking my October stocks. I usually try to pick my stocks within the first 10 days of each month. I will try to stick to that rule going forward.
I have not had much time to research my above picks because I have been spending my "investing time" reading another best seller investing book called "Rule No.1" by Phil Town.
I will continue to run my two Magic Formula Funds. I am thinking of starting one other fund in which I plan to hold a maximum of 6 really-well-researched positions as advised by Phil Town in his Rule No.1 book.
I have been spending most of my time following his advice to identify a few winners. I plan to commit up to 50k to that fund. I have not yet identified any winner stocks for this new fund which I will call - RULE1.
Btw, MFF2 is doing horribly so far. Given the craziness of the markets of last 2 weeks, it has been beaten down really badly. I think it is still too early to deduct any conclusive ideas given its short life time and the crazy few past weeks. As of Oct 13 market close (after a historic and record breaking 10% up day), my MFF2 (which started its life on Sep 5, 2008) is down 25.05% (versus SP500 which is down 18.54%). So I am lagging the SP500 by 6.50% on a straight basis. I am not even calculating annualized numbers for this fund at this point.
The performance of my MFF1 has also suffered majorly in the last 2 weeks. MFF1 is now beating the SP500 only by 2.78% (2.39% annualized).
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