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The study also found that the magic formula could be improved by using operating cash flows instead of EBIT. [8] The strategy also outperforms the Indian stock market over the period July 2012 - Feb 2020, according to a 2022 paper. Over this period the average return was 13.9% of 30-stock Magic Formula portfolio versus 9.3% for the BSE Sensex. [9]
In this article we take a look at 10 best magic formula stocks to buy now based on legendary investor Joel Greenblatt’s strategy and stock holdings. Click to skip ahead our discussion and jump ...
The Magic Formula looks for a yield higher than 10%. To find profitable companies, Greenblatt's Magic Formula seeks businesses that generate returns on assets greater than 25%. In other words, for ...
If you're a busy investor with more than just stock-picking on your plate, you might want to consider a mechanical investing strategy. And if you're interested in stocks, one of the most ...
Greenblatt's book The Little Book That Beats the Market (Wiley, 2005 & 2010) introduced the investment strategy of "magic formula investing", a method for determining which stocks to buy: "cheap and good companies" with a high earnings yield and a high return on invested capital. His strategy is featured in The Guru Investor by John P. Reese ...
Magic formula investing, an investment technique outlined by Joel Greenblatt that uses the principles of value investing; Magic formula (Swiss politics), an arithmetic formula for dividing the seven executive seats on the Federal Council among the four coalition parties in Switzerland
If you're a busy investor with more than just stock-picking on your plate, you might want to consider a mechanical investing strategy. And if you're interested in stocks, one of the most ...
A 2024 study evaluates the formula for the U.S. market from 1963 to 2022 and compares it with the performance of the Magic Formula, F-Score, and Acquirer’s Multiple. The study finds that all four formulas generate significant raw and risk-adjusted returns, primarily by providing efficient exposure to well-established style factors.