Saturday, October 28, 2006

Portfolio 123

We've been using Portfolio 123, a do-it-yourself technical analysis / fundamentals hybrid site for a portion of our portfolio. It allows you to create "technimental" based models to rank and filter a universe of stocks with fundamental ratios and custom buy and sell rules. The method of ranking is similar Joel Greenblatt's "magic formula" method of picking stocks from his book "The Little Book That Beat the Market" that I recently read.

Portfolio 123 is great if you want to build your own ranking model, which is especially useful when it comes to picking small-cap stocks. One of the users with the username DennyHalwes has managed a 1-year 119% excess return over the SPX with his proprietary small-cap Portfolio123 model.

I recommend you check it out: http://www.portfolio123.com/

Paul

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