Formula Investing

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Dictionary Says

Definition of 'Formula Investing'

A method of investing that rigidly follows a prescribed theory or formula, using the results as blanket investment policy. Formula investing can be related to how an investor handles asset allocation, investments between funds or securities, or decides when and how much money to invest.


Investopedia Says

Investopedia explains 'Formula Investing'

One of the most valuable traits of formula investing is that a lot of the decision-making is taken out of the process, which can be a stress reliever for some investors. With formula investing, they simply follow the rules or formula and invest accordingly.

A simple strategy like dollar-cost averaging can help investors to build up their portfolios in a piecemeal fashion, adding small amounts of money over a consistent time frame. An investor must make sure that the formula fits with his or her risk appetite, time horizon and liquidity needs in order for it to be the most effective. 


Search results for

'Formula Investing'

  • Advanced Bond Concepts: Formula Cheat Sheet | Investopedia

    http://www.investopedia.com/university/advancedbond/advancedbond7.asp
    ... Duration; Advanced Bond Concepts: Convexity; Advanced Bond Concepts: Formula Cheat
    Sheet; ... Follow & Share: Free Newsletters Daily investing content in your inbox. ...

  • A formula timing plan which consists of periodic purchases of a ...

    http://www.investopedia.com/ask/answers/10/dca.asp
    ... A formula timing plan which consists of periodic purchases of a fixed dollar amount
    of an ... Follow & Share: Free Newsletters Daily investing content in your inbox ...

  • Greenblatt's Little Book Loves McGraw-Hill

    http://stocks.investopedia.com/stock-analysis/2011/Greenblatts-Little-Book-Loves-McGraw-Hill-MHP-NWS-TRI-PSO0401.aspx
    ... His Formula Investing US Value Select fund (FNSAX) selects 75-120 of the highest
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  • Improve Your Investing With Excel

    http://www.investopedia.com/articles/basics/10/using-excel-to-invest.asp
    ... November 22 2010 | Filed Under ยป Formulas, Investing Basics. Microsoft's Excel
    spreadsheet program ... which is time consuming, or you can insert a formula into a ...

  • A Different Magic Formula

    http://stocks.investopedia.com/stock-analysis/2010/A-Different-Magic-Formula-CPB-RAH-CAG-SLE-MKC-K-SJM-GIS-PEP-GMCR0223.aspx
    ... None of them stands out in a crowd. As for Campbell Soup, it finished middle of
    the pack using my formula, which is just fine. ... Investing is no different. ...

  • 4 Cheap "Magic Formula" Stocks

    http://stocks.investopedia.com/stock-analysis/2011/4-Cheap-Magic-Formula-Stocks-JGBO-PETS-RTN-MSFT0428.aspx
    ... Investors should be mindful of this when using the magic formula for ideas ... Gad is
    also the author of "The Business of Value Investing" which will be out in the ...

  • Advance Auto Parts Continues A Winning Formula

    http://stocks.investopedia.com/stock-analysis/2010/Advance-Auto-Parts-Continues-A-Winning-Formula-AAP-AZO-ORLY-TM-F-HD-WMT0816.aspx
    ... Advance Auto Parts Continues A Winning Formula. ... and convert the CSK stores it acquired
    a little while ago, and AutoZone is still investing resources into its ...

  • Nike's Winning Formula

    http://stocks.investopedia.com/stock-analysis/2010/Nikes-Winning-Formula-NKE-ADDYY-SKX-KSWS-FL0924.aspx
    ... Nike's Winning Formula. Posted: Sep 24 ... and healthcare. Simpson operates the
    Kratisto Investing blog, and can be reached there. Filed ...

  • How To Invest Like An Endowment

    http://www.investopedia.com/articles/financial-theory/09/ivy-league-endowments-money-management.asp
    ... university endowments are actually able to beat the market. Is there any
    secret endowment formula that you too can use for investing? ...

  • Value Investing: What Is Value Investing? | Investopedia

    http://www.investopedia.com/university/value-investing/value-investing1.asp
    ... What's more, value investing is a bit of an art form - you can't simply use a
    value-investing formula to pick the right stocks which fit the desired criteria. ...

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