How to use Suggestions

If your preference is to use Formula Stocks as a provider of investment ideas, without mirroring the model portfolio, Suggestions is what you are looking for.

Our model portfolio is limited to its starting capital. It never receives additional cash aside from dividends and stocks sold. Because of this the model portfolio won't always just BUY everything that looks like a good deal, nor deploy all cash at once, and the Trades page therefore contains only a subset of the total amount of interesting investments which have been identified.

The purpose of Suggestions is to provide a non-cash constrained view of buying opportunities, equivalent to having unlimited capital at ones disposal. It answers a very simple question: What is interesting to purchase given unlimited capital?

Suggestions look like this:



In this case 2 stock are suggested: WPM (Wheaton Precious Metals) & BIG (Big lots Inc.), purchased at respectively $44.46 and $57.93 a share.

10% of weekly funds are allocated to each. Please note that percentages shown in Suggestions are not a percentage of a total portfolio, but rather percentages of a weekly amount of available capital.

Note that the allocation will typically not add up to 100%. if the allocation of all the suggestions is less than 100%, that means Joe is keeping some extra cash for other weeks in case he can get a better deal.

That means, if Joe had $1,000 to invest this week. He would buy WPM for around $100 and BIG for around $100, and keep the remaining $800 in cash for next week.

the allocation doesn't have to match at all, it is just a suggestion. Use any amount you find relevant.

The suggestions are updated weekly. This does not imply that you should invest on a weekly basis. You could use Suggestions simply when you have available capital at your disposal.

Note that since the system is not managing a "suggestions" portfolio but simply displaying the the opportunities, unlike the Trades page, you will NOT see a sell signal for all of the previous buy recommendations. Using Suggestion, when to sell is something you have to decide on your own.
If you have any questions, don't hesitate to contact us!

Updated on: 24/09/2021