Does Magic Formula Investing Work? | Seth's Little Book Update

Question for everyone, 99% of people should just invest in the S&P 500 (a few people here aren’t apart of that 99% I know) as it’s pretty safe returns of approx 9%. So why don’t people just invest in Proshares Ultra S&P500 (SSO) which doubles the returns of the S&P500? Expense ratio is 0.95% but if I’m confident my returns will be 16-20% per year over a long period of time why not do that vs VOO? If you commit to VOO why not SSO? If everybody could put there 2 cents here that’d be great because this could literally be a million dollar question 💰

I’m almost a year in to the strategy. Loved the update!

Well in fairness in that time frame even the hype stocks were rallying up so you could’ve made money with them too lok

My return during that period was around 57%, funny enough there has never been a year i lost to the market yet. I am starting my own private equity fund soon . I need to get better with options tho

the bath scene with the candles. 🤣🤣

wait what. you were me....you made some bad decisions

Just ran magic formula stock screener. GoPro is on there. Please do GoPro stock video. Thank you.

Would have been great to watch you do it live like you did after year one

How did I miss this gem

Y film yo self in that tub?

Seth! You can't just sit with that axe in your lap! Next time draw a riff or lick on that Jaguar!

Nice Troy Van Leeuwen Jazzmaster!

My girlfriend has a crush on Seth🤓

Great returns Seth! I love the different shots in the video of you doing random stuff.

Seth in a bathtub. 🤣

Great video by the way! I am liking your guys process. That is the deal with the watsapp?

I started with 6 Little book stocks last year in november. I was supposed to buy more every 3 months as per book but never did and kept buying cool companies. As of today my portfolio of cool companies is at -20+% but magic portfolio is -1.5% only. Feel sorry for myself for not believing Joel Greenblatt. But this video is good reminder that the system works.

Been waiting for this video. Thank you Seth!!!

What is the process at the end of the year to cut stocks and add new ones?

I really need you guys to do a video on how covered calls work. Because I have no idea.

Started reading this book it's great so far I'm a slow reader but I'll get throw it it's interesting

Covered calls, and cash secured puts are amazing. I never buy options contracts unless it's the occasional LEAPS contract. Selling options is king IMO. I'm curious how you feel about Dividend ETF's, specifically SCHD and FDVV. I have covered calls on SCHD. I feel very strong about their dividend index performance in the long run.

Bro you have a very soothing voice lol

Which tool do you use to track the portfolio performance?

Hey Seth, what are your thoughts on doing this yearly vs. quarterly? I’ve been following the quarterly process but feel like yearly might be more “set it and forget it”.

Seth in the tub 🤣🍻📈

How about paul going to town on all 30 stocks and see how angry hes gets?

History has shown whenever someone thinks they’ve discovered some mathematical indicator that shows “this is the stock” it never works long term. Surprised this channel would fall for this

Thanks brother I appreciate you guys.

I wonder what your account would look like if you kept your Tesla shares. :)

If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you, prevent inflatio

Unless this strategy is used for 5-8yrs, we cannot definitely say that the magic formula beats the market. It rises faster than the index, but also tanks faster!!

My question about this strategy that i havent been able to find an answer is , should i sell a stock when it leaves the screener? Keep in mind that I live in a country where it doesnt matter when you sell the tax is the same

$11,000 bed?

I just finished listening to the Audible book I want to know can we hold theses stocks we pick for more than a year and can we build strategy on top of it

Guys, I’m holding stocks from following the magic formula investing approach myself and one is already up over 20%. Is it wise to take the profits now or still hold for the full 12 months and accept it may drop a little… STUCK

What do you do for a living?? That’s the real question. 🤣

what market cap did you use

I don’t think people realize that 1% increased earnings is a lot. The general populous is dumb.

It wasn't about P/E but EBIT/EV

is year an update for year 3 coming?

howz this strategy work after 3 years?. Guess no one will remember the hype!!!?!

Investing can never be reduced to a simple formula. If it could be, everyone would do it and it wouldn't work

I thought you were legit until I heard you open your mouth about selling covered calls.

I will be in Akron in 2werks can I come into your office to get alil help to start my man 😁

dude talking shop right there on the tub.

Clown 🤡

Hey any update this year?

What is the ETF you have created called?

Personal advice, put a basic retiring on nasdaq 100, like a survival account, as Nasdaq 100 gives 14% a year on average is not bad and very little risk, and with the rest try any strategies might make you rich like this one magic amazing strategy