On vacation in beautiful Coconut Grove outside Miami. Thus this update will be short and sweet. More tables, fewer words. I need to go get some Panther coffee!
You have found your way to the MFI Diary, a blog where I let readers know my thoughts and performance on real life, real dollar Magic Formula Portfolios (based of course on "The Little Book The Beats The Market" by Joel Greenblatt. I also spend some effort tracking hypothetical portfolios based on downloads from the official website going back to January 2006.
Of course, I have to have a disclaimer - I am just a guy with a spreadsheet and not a stock advisor. You should do your own due diligence before acting on anything you read here.
Past Week
It was a very good week as I was up over 1%. Here is where I stand year to date - keep in mind this includes a large cash component, while later table exclude the cash part:
| Component | YTD |
| Overall | +9.27% |
| Select | +13.28% |
| Formula | +8.62% |
| Miscellaneous | -2.20% |
| Dividend | +10.90% |
| R3K | +10.91% |
| MFI Index | +2.42% |
So overall, up over 9% on the year. My two MFI portfolios, Select and Formula, are both doing well, even with cash component. Here is how they each did during the week for the individual stocks:
| Portfolio | Stock | Last Week | Current | Dividend | Change |
| Formula | SYNT | 16.72 | 19.40 | - | 16.0% |
| Formula | CSCO | 31.42 | 31.84 | - | 1.3% |
| Formula | HPQ | 18.42 | 19.15 | - | 4.0% |
| Formula | GILD | 70.57 | 73.76 | - | 4.5% |
| Formula | GME | 21.02 | 20.78 | - | -1.1% |
| Formula | CA | 34.48 | 34.42 | - | -0.2% |
| Formula | TGNA | 22.70 | 22.72 | - | 0.1% |
| Formula | OMC | 81.28 | 82.73 | - | 1.8% |
| Formula | CPLA | 86.50 | 87.95 | - | 1.7% |
| Formula | BKE | 16.60 | 16.75 | - | 0.9% |
| Formula | RGR | 60.20 | 57.45 | - | -4.6% |
| Formula | LDOS | 53.24 | 53.44 | - | 0.4% |
| Formula | PBI | 15.48 | 15.53 | - | 0.3% |
So great week for SYNT, which is now my largest holding with the 16% spurt.
| Portfolio | Stock | Last Week | Current | Dividend | Change |
| Select | ATHM | 47.48 | 47.60 | - | 0.3% |
| Select | MSGN | 23.00 | 21.15 | - | -8.0% |
| Select | AKRX | 33.65 | 33.60 | - | -0.1% |
| Select | YY | 63.79 | 67.59 | - | 6.0% |
| Select | AMGN | 177.13 | 180.21 | - | 1.7% |
| Select | RHI | 49.05 | 48.42 | - | -1.3% |
| Select | CA | 34.48 | 34.42 | - | -0.2% |
| Select | MPAA | 28.07 | 27.68 | - | -1.4% |
| Select | WNC | 22.51 | 22.68 | - | 0.8% |
| Select | QCOM | 56.81 | 53.84 | - | -5.2% |
| Select | KLAC | 99.64 | 99.89 | - | 0.3% |
| Select | RGR | 60.20 | 57.45 | - | -4.6% |
| Select | WSTC | 23.33 | 23.32 | - | 0.0% |
| Select | TGNA | 22.70 | 22.72 | - | 0.1% |
| Select | TIME | 14.10 | 13.85 | - | -1.8% |
| Select | VLO | 68.04 | 67.78 | - | -0.4% |
| Select | CSCO | 31.42 | 31.84 | - | 1.3% |
| Select | GILD | 70.57 | 73.76 | 4.5% | |
| Select | GNC | 8.04 | 8.89 | 10.6% |
On the Select side, hampered by MSGN struggles (seems no one wants to buy them). GNC has been on fire, but is my smallest holding (these are in descending order).
MFI Select
As the name suggests, this is my MFI portfolio where I allow myself free reign to pick whatever "value" stocks I want. It can be from the official website screens or from my own workbook where I create a top 200 at least once a month. I rebooted this approach in August 2012 (I licked my wounds in August 2011 when I stopped for a year and re-considered my strategy/approach).
Here is how MFI Select has down month by month (assuming I began with $100,000):
| Date | Differential | MFI Value | R3K Value |
| 12/1/2012 | -2.20% | 99,765 | 101,965 |
| 1/1/2013 | -1.78% | 102,798 | 104,575 |
| 2/1/2013 | -2.26% | 102,594 | 104,856 |
| 3/1/2013 | -2.23% | 102,881 | 105,114 |
| 4/1/2013 | -0.43% | 106,804 | 107,234 |
| 5/1/2013 | 2.00% | 110,423 | 108,423 |
| 6/1/2013 | 4.75% | 115,831 | 111,085 |
| 7/1/2013 | 4.29% | 114,888 | 110,597 |
| 8/1/2013 | 6.91% | 124,799 | 117,889 |
| 9/1/2013 | 10.46% | 124,536 | 114,079 |
| 10/1/2013 | 19.67% | 138,655 | 118,990 |
| 11/1/2013 | 19.75% | 143,514 | 123,764 |
| 12/1/2013 | 23.70% | 150,105 | 126,405 |
| 1/1/2014 | 26.63% | 157,138 | 130,503 |
| 2/1/2014 | 24.70% | 150,619 | 125,918 |
| 3/1/2014 | 25.66% | 158,116 | 132,458 |
| 4/1/2014 | 30.38% | 162,991 | 132,616 |
| 5/1/2014 | 29.65% | 162,428 | 132,779 |
| 6/1/2014 | 31.44% | 167,001 | 135,559 |
| 7/1/2014 | 39.23% | 177,971 | 138,740 |
| 8/1/2014 | 31.13% | 167,054 | 135,922 |
| 9/1/2014 | 35.90% | 177,792 | 141,892 |
| 10/1/2014 | 29.38% | 168,321 | 138,944 |
| 11/1/2014 | 26.14% | 168,810 | 142,666 |
| 12/1/2014 | 30.22% | 176,420 | 146,198 |
| 1/1/2015 | 28.17% | 174,306 | 146,140 |
| 2/1/2015 | 20.63% | 162,833 | 142,201 |
| 3/1/2015 | 25.15% | 175,476 | 150,324 |
| 4/1/2015 | 29.95% | 178,565 | 148,612 |
| 5/1/2015 | 37.31% | 186,655 | 149,348 |
| 6/1/2015 | 51.53% | 202,897 | 151,371 |
| 7/1/2015 | 62.69% | 211,437 | 148,743 |
| 8/1/2015 | 40.75% | 192,117 | 151,369 |
| 9/1/2015 | 36.41% | 178,603 | 142,195 |
| 10/1/2015 | 43.12% | 181,175 | 138,052 |
| 11/1/2015 | 69.02% | 217,959 | 148,936 |
| 12/1/2015 | 73.49% | 223,435 | 149,946 |
| 1/1/2016 | 63.33% | 209,514 | 146,186 |
| 2/1/2016 | 49.49% | 187,428 | 137,934 |
| 3/1/2016 | 56.48% | 194,415 | 137,934 |
| 4/1/2016 | 47.34% | 195,770 | 148,430 |
| 5/1/2016 | 46.38% | 194,301 | 147,923 |
| 6/1/2016 | 51.44% | 201,999 | 150,558 |
| 7/1/2016 | 50.41% | 201,092 | 150,680 |
| 8/1/2016 | 52.72% | 207,223 | 154,501 |
| 9/1/2016 | 67.04% | 222,481 | 155,446 |
| 10/1/2016 | 42.98% | 198,563 | 155,582 |
| 11/1/2016 | 41.86% | 195,726 | 153,863 |
| 12/1/2016 | 45.92% | 202,775 | 156,859 |
| 1/1/2017 | 45.60% | 209,503 | 163,936 |
| 2/1/2017 | 45.20% | 212,330 | 167,146 |
| 3/1/2017 | 48.80% | 222,583 | 173,829 |
| 4/1/2017 | 55.70% | 229,473 | 173,735 |
| 5/1/2017 | 55.80% | 231,497 | 175,712 |
| 6/1/2017 | 53.40% | 230,599 | 177,203 |
| 7/1/2017 | 60.28% | 239,060 | 178,782 |
| Current | 60.81% | 243,171 | 182,360 |
Here are the 4 tranches, less than a month left on August tranche.
| 8/15/2016 | Start | Current | Dividend | Pct Gain | R3K Gain |
| CSCO | $31.20 | $31.84 | $1.10 | 5.6% | 15.1% |
| GNC | $19.79 | $8.89 | $0.38 | -53.2% | 15.1% |
| VLO | $54.73 | $67.78 | $2.00 | 27.5% | 15.1% |
| MSGN | $16.68 | $21.15 | $0.00 | 26.8% | 15.1% |
| GILD | $79.33 | $73.76 | $1.98 | -4.5% | 15.1% |
| Totals | 0.4% | 15.1% | |||
| 11/15/2016 | Start | Current | Dividend | Pct Gain | R3K Gain |
| MPAA | $26.55 | $27.68 | $0.00 | 4.3% | 15.0% |
| ATHM | $22.61 | $47.60 | $0.00 | 110.5% | 15.0% |
| AMGN | $145.14 | $180.21 | $2.00 | 25.5% | 15.0% |
| RHI | $43.23 | $48.42 | $0.70 | 13.6% | 15.0% |
| CA | $31.11 | $34.42 | $0.51 | 12.3% | 15.0% |
| Totals | 33.2% | 15.0% | |||
| 2/1/2017 | Start | Current | Dividend | Pct Gain | R3K Gain |
| AKRX | $19.10 | $33.60 | $0.00 | 75.9% | 8.9% |
| YY | $41.08 | $67.59 | $0.00 | 64.5% | 8.9% |
| KLAC | $85.11 | $99.89 | $1.08 | 18.6% | 8.9% |
| WNC | $17.65 | $22.68 | $0.06 | 28.8% | 8.9% |
| RGR | $52.75 | $57.45 | $0.92 | 10.7% | 8.9% |
| Totals | 39.7% | 8.9% | |||
| 5/6/2017 | Start | Current | Dividend | Pct Gain | R3K Gain |
| WSTC | $24.15 | $23.32 | $0.00 | -3.4% | 3.3% |
| TGNA | $25.75 | $22.72 | $0.07 | -11.5% | 3.3% |
| TIME | $15.05 | $13.85 | $0.04 | -7.7% | 3.3% |
| MSGN | $23.55 | $21.15 | $0.00 | -10.2% | 3.3% |
| QCOM | $54.93 | $53.84 | $0.57 | -0.9% | 3.3% |
| Totals | -6.8% | 3.3% |
ATHM is up 110%, I am happy, but nervous. YY is similar, up 64%.
| Category/Tranche | August | November | February | May | Total |
| Initial Investment | 25,000 | 25,000 | 25,000 | 25,000 | 100,000 |
| Current Tranche | 0.4% | 33.2% | 39.7% | -6.8% | 17.8% |
| Previous Tranche | 2.8% | 8.0% | 10.7% | 19.1% | 9.1% |
| Tranche -2 | 11.2% | 69.4% | -14.3% | -25.2% | 10.3% |
| Tranche -3 | 41.4% | 14.2% | 8.5% | 18.3% | 20.6% |
| Tranche -4 | 14.1% | 43.7% | 78.3% | 33.0% | 42.3% |
| MFI Overall Gain | 85.3% | 300.4% | 156.4% | 30.6% | 143.2% |
| Current Balance | 46,313 | 100,106 | 64,095 | 32,657 | 243,171 |
| R3K Current Tranche | 15.1% | 15.0% | 8.9% | 3.3% | 10.6% |
| R3K Overall Gain | 92.4% | 95.9% | 76.2% | 64.9% | 82.4% |
| R3K Balance | 48,098 | 48,985 | 44,062 | 41,216 | 182,360 |
| Annualized IRR | 13.3% | 34.5% | 23.4% | 6.5% | 19.4% |
You can see my open tranches are up 17.8% on average, smoking Russell 3000 up 10.6%.
MFI Formula
Here I also have 4 tranches of 5 stocks. But these are picked by formula and random number generator. I actually started a new tranche this past week. I have been using this approach since October 2014. It had a very good week.
| Date | Differential | Value | R3K Value |
| 10/1/2014 | 0.00% | 100,000 | 100,000 |
| 11/1/2014 | 1.63% | 102,288 | 100,658 |
| 12/1/2014 | 0.30% | 101,375 | 101,075 |
| 1/1/2015 | -0.33% | 100,664 | 100,995 |
| 2/1/2015 | 1.67% | 101,281 | 99,611 |
| 3/1/2015 | 3.62% | 106,073 | 102,454 |
| 4/1/2015 | 5.09% | 106,781 | 101,695 |
| 5/1/2015 | 5.78% | 107,859 | 102,077 |
| 6/1/2015 | 5.08% | 108,213 | 103,134 |
| 7/1/2015 | 4.82% | 106,423 | 101,604 |
| 8/1/2015 | 3.71% | 107,112 | 103,404 |
| 9/1/2015 | 4.38% | 101,523 | 97,139 |
| 10/1/2015 | 6.39% | 100,703 | 94,312 |
| 11/1/2015 | 2.93% | 104,835 | 101,907 |
| 12/1/2015 | -3.48% | 99,443 | 102,926 |
| 1/1/2016 | -3.36% | 96,830 | 100,012 |
| 2/1/2016 | -0.72% | 93,797 | 94,367 |
| 3/1/2016 | 4.07% | 98,588 | 94,367 |
| 4/1/2016 | 0.34% | 102,371 | 101,548 |
| 5/1/2016 | -1.91% | 99,774 | 101,200 |
| 6/1/2016 | -0.42% | 103,145 | 103,568 |
| 7/1/2016 | -0.19% | 103,022 | 103,216 |
| 8/1/2016 | 2.56% | 109,419 | 106,857 |
| 9/1/2016 | -0.34% | 106,704 | 107,048 |
| 10/1/2016 | -0.85% | 106,377 | 107,230 |
| 11/1/2016 | 0.42% | 105,421 | 105,003 |
| 12/1/2016 | 1.62% | 110,705 | 109,088 |
| 1/1/2017 | 1.57% | 113,406 | 111,832 |
| 2/1/2017 | 1.32% | 114,809 | 113,486 |
| 3/1/2017 | -5.09% | 112,930 | 118,024 |
| 4/1/2017 | -1.86% | 116,227 | 118,091 |
| 5/1/2017 | 1.11% | 120,403 | 119,296 |
| 6/1/2017 | -2.65% | 117,824 | 120,472 |
| 7/1/2017 | -2.40% | 119,144 | 121,545 |
| Current | -0.34% | 123,627 | 123,962 |
Here are the four tranches:
| 10/3/2016 | Start | Current | Dividend | Pct Gain | R3K Gain |
| CPLA | $58.15 | $87.95 | $1.23 | 53.4% | 15.9% |
| LDOS | $43.01 | $53.44 | $0.96 | 26.5% | 15.9% |
| GME | $27.70 | $20.78 | $1.13 | -20.9% | 15.9% |
| PBI | $18.15 | $15.53 | $0.56 | -11.3% | 15.9% |
| CSCO | $31.72 | $31.84 | $1.10 | 3.8% | 15.9% |
| Totals | 10.3% | 15.9% | |||
| 12/30/2016 | Start | Current | Dividend | Pct Gain | R3K Gain |
| GILD | $71.69 | $73.76 | $1.04 | 4.3% | 10.8% |
| HPQ | $15.00 | $19.15 | $0.40 | 30.3% | 10.8% |
| TGNA | $21.33 | $22.72 | $0.21 | 7.5% | 10.8% |
| CA | $31.99 | $34.42 | $0.51 | 9.2% | 10.8% |
| SYNT | $19.79 | $19.40 | $0.00 | -2.0% | 10.8% |
| Totals | 9.9% | 10.8% | |||
| 4/1/2017 | Start | Current | Dividend | Pct Gain | R3K Gain |
| BKE | $18.45 | $16.75 | $0.50 | -6.5% | 5.0% |
| CSCO | $33.76 | $31.84 | $0.58 | -4.0% | 5.0% |
| GILD | $67.50 | $73.76 | $0.52 | 10.0% | 5.0% |
| OMC | $85.53 | $82.73 | $0.55 | -2.6% | 5.0% |
| SYNT | $16.76 | $19.40 | $0.00 | 15.7% | 5.0% |
| Totals | 2.5% | 5.0% | |||
| 7/1/2017 | Start | Current | Dividend | Pct Gain | R3K Gain |
| CSCO | $30.98 | $31.84 | $0.00 | 2.8% | 1.9% |
| GME | $20.95 | $20.78 | $0.00 | -0.8% | 1.9% |
| HPQ | $17.60 | $19.15 | $0.00 | 8.8% | 1.9% |
| RGR | $60.70 | $57.45 | $0.00 | -5.4% | 1.9% |
| SYNT | $16.21 | $19.40 | $0.00 | 19.7% | 1.9% |
| Totals | 5.0% | 1.9% |
| Category/Tranche | October | January | April | July | Total |
| Initial Investment | 249,820 | 249,939 | 250,180 | 249,728 | 999,667 |
| Current Tranche | 10.3% | 9.9% | 2.5% | 5.0% | 6.6% |
| Previous Tranche | 5.5% | 9.3% | 25.2% | 26.7% | 16.4% |
| Tranche -2 | 0.5% | 11.0% | -0.2% | -12.5% | -0.3% |
| MFI Overall Gain | 16.9% | 33.3% | 28.0% | 16.5% | 23.7% |
| Current Balance | 292,026 | 333,100 | 320,291 | 290,857 | 1,236,274 |
| R3K Current Tranche | 15.9% | 10.8% | 5.0% | 1.9% | 8.4% |
| R3K Overall Gain | 30.9% | 23.8% | 22.5% | 18.7% | 24.0% |
| R3K Balance | 327,099 | 309,512 | 306,595 | 296,417 | 1,239,623 |
| Annualized IRR | 5.7% | 11.9% | 11.3% | 7.7% | 9.1% |
I definitely closed some ground on open tranches, 6.6% to 8.4%.
Dividend Portfolio and Miscellaneous
Everyday I am closer to retirement, so I am focusing more and more on the dividend portfolio. It has been great this year.
| Stock | Initial | Current | Div/Sh | Gain/Loss | Yield |
| FDEU | 18.40 | 18.96 | 0.24 | 4% | 7.7% |
| JQC | 8.20 | 8.60 | 0.54 | 12% | 7.3% |
| ISBC | 13.15 | 13.02 | - | -1% | 2.5% |
| TK | 5.24 | 7.71 | - | 47% | 2.9% |
| SBRA | 23.53 | 23.45 | 0.29 | 1% | 7.3% |
| KCLI | 49.19 | 48.95 | - | 0% | 2.5% |
| NRZ | 16.22 | 15.96 | 0.38 | 1% | 12.5% |
| PSXP | 48.20 | 50.42 | - | 5% | 4.9% |
| TGONF | 10.47 | 12.81 | 1.97 | 41% | 5.4% |
| DHF | 3.34 | 3.53 | 0.07 | 8% | 9.2% |
| LADR | 12.88 | 13.10 | - | 2% | 9.2% |
| RILY | 13.85 | 19.85 | - | 43% | 1.6% |
| DSL | 18.49 | 20.97 | 2.01 | 24% | 8.6% |
| FSFR | 8.92 | 8.66 | - | -3% | 8.8% |
| O | 25.02 | 57.31 | 20.25 | 210% | 4.4% |
| OIBAX | 5.09 | 5.94 | 2.39 | 64% | 3.9% |
I think I will continue to look for plays that I think are "safe". KCLI, FSFR and TGONF trade well under book value, so I am getting a dollar for 70 cents. Then ISBC is "cheap"for a smaller bank (1.27 of BV with a 2.4% dividend).
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