A whisper rises from shadows near,
“They speak of magic in the trail here”
The pilgrim asks, his voice unsure
“Is this the truth, or another allure?”
The voice responds, a quiet hum,
“Only time reveals what’s to come”
| Duration | 0 months |
| Magic Formula | 0% |
| Nifty 50 | 0% |
Aim : To test the performance of the Magic Formula portfolio illustrated by Joel Greenblatt in The Little Book That Beats the Market in comparison with the Nifty 50 benchmark index over an extended time period
Date of initiation : 1st October 2024
Number of stocks : 25
Capital : ₹1,00,000 in Nifty 50 vs ₹1,00,000 in Magic Portfolio
Action : Every 2 months
Screening : Market Capitalisation > 500 crores ; Return on Assets > 25%
Process :
1. Run the screen
2. Remove all finance and financial service companies
3. Look for companies with unusual numbers and eliminate them
4. Sort the companies by magic formula and choose the top 5 companies
5. Split the ₹1,00,000 capital into 5 parts of ₹20,000 each
6. Invest a ₹20,000 part in Nifty 50 ETF and ₹20,000 in the top 5 Magic picks every 2 months until all the capital has been utilised
7. Sell each stock after holding it for 1 year and replace the stocks sold with the top 5 picks then
01/10/2024 : Initiation
Nifty 50 ETF : ₹20,000 : Nippon India ETF Nifty BeES
| Current Price : ₹288.27 | Quantity Bought : 69 | Total Value : 19,890 |
Magic Top 5 Stocks : Ksolves India, MIC Electronics, Lloyds Metals & Energy, Basilic Fly Studio, Petro Carbon & Chemicals
| Current Price(Sum): ₹2837.29 | Quantity Bought : 7 | Total Value : 19,859 |