Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
 Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd

The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (42) |
Author: CathyInOhio ✧  😊 😞
Number: of 21939 
Subject: Re: Diversifying away from Berkshire
Date: 01/02/23 11:48 AM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 7
'I believe it [Magic Formula] is not well regarded in the mechanical investing community - they could not duplicate Greenblatt's published results.

Still, the theory is sound - buy a slate of stocks with quality (high ROA) and value (Low PE) characteristics. It ought to give reasonable results, if you can stick with the inevitable tracking error versus the index.

Too much work for me. Avantis will do it for me for 15 bps.'

That was a reference to this:

Avantis U.S. Large Cap Value ETF
avantisinvestors.com - Avantis US large cap value ETF

I've experimented a little with adding a momentum component to a universe of value stocks. Using your favorite value or low volatility ETF of choice (like the Advantis one referenced above, or my personal favorite Franklin Low Volatility High Dividend (symbol LVHD), go to the home page of the fund, scroll down to the link to download the portfolio holdings into a spreadsheet. Add a column to pull a one year return for each holding and then buy the top 15. Rinse and repeat every month. I haven't formally backtested this, but I do like the stocks that it pulls. Current picks using the LVHD ETF are:

LMT
CPB
GIS
ABBV
GILD
SJM
DTM
ED
PCAR
OMC
CMI
K
UBSI
PNW
GLPI

Cathy

Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to CathyInOhio here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
Unthreaded | Threaded | Whole Thread (42) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Ticker or Board Name Author

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community