The MHP (Magic Hat Portfolio) on Stockopedia (http://www.stockopedia.com/fantasy-funds/magic-hat-463/) is an experiment by me to see if a human can improve on a mechanical Greeblatt Magic Formula screen. I am trying to weed out “mistakes” that I feel the screening commits: unseasoned companies, scams, foreign companies (particularly Chinese), fishy accounting, and statistical quirks. Apart from that, I am agnostic as to the sector the company operates in, although I will try to avoid heavy concentration in any one sector. I will mostly apply “Strategic Ignorance”, by which I mean that I wont try to be clever in my stockpicking. My picking will be mostly mechanical. A summary of most of my Magic Hat articles can be found on the web page http://www.markcarter.me.uk/money/greenblatt.htm This will allow you to see, at a glance, what shares have been bought and sold in the past, as well as what shares have been rejected from consideration and why.
I was able to adjust the MHP portfolio on Stockopedia today, despite it being a bank holiday. By rights, I don’t think that should have been possible.
WIN (Wincanton) is ejected from the portfolio by rotation, having clocked up an 83% gain since its purchase in July 2014. Not bad at all. It still qualifies for Stockopedia’s Greenblatt Screen, but it has a rather poor overall StockRank: 56. I opted to replace it with PAY (Paypoint), which has a SR of 81.
That’s about it, really. Enjoy the rest of your bank holiday. I hear that the weather has been excellent in many parts of the UK. Unfortunately, it’s been rather dour up here in Scotland.
Stay safe.
