Magic Formula Investing

Magic formula investing is a very stringent method for value investing.

Magic formula investing. I just dont believe the results are as good as it seems. How the Magic Formula Works. What is Magic Formula Investing.

This is what this article shows you. Would you like it to find the best Magic Formula investing companies world-wide in seconds. Magic formula investing is a strategy of buying good stocks at good prices.

Magic Formula Investing Last Updated. There is nothing magical about the formula and the use of the formula does not guarantee performance or investment success. By popular demand the Magic Formula will soon be added to the list of value stock screens but the one thing that has held it back is the reliability of the backtest performed by Greenblatt.

The Magic Formula uses the principles of value investing and combines the investment philosophies of Benjamin Graham and Warren Buffet. This article gives you the best Magic Formula investment strategy stock ideas for 2021. Earn a back-tested 6005 more by making just one small change to your Magic Formula investment strategy.

It is also the book that got me started with quantitative investing. Greenblatt suggests purchasing 30 good companies. Magic Formula is a term used to describe the investment strategy explained in The Little Book That Beats the Market.

Essentially this strategy seeks to buy good companies at bargain prices. Thats all there is to it. According to Joel Greenblatt The Magic Formula when tested by him offered 24 returns from 1988-2009.