Magic Formula Investing

Magic Formula Investing

Last Updated: Fri, 18 Aug 2017 17:16:41

Magic formula investing is a term referring to an investment technique outlined by Joel Greenblatt that uses the principles of value investing.

Greenblatt suggests purchasing 30 'good companies': cheap stocks with a high earnings yield and a high return on capital. He touts the success of his magic formula in his book 'The Little Book that Beats the Market', Joel Greenblatt, citing that it does in fact beat the S&P 500 96% of the time, and has averaged a 17-year annual return of 30.8%

Contributor: Maher Alias.

Stock Market Cap EY ROIC Magic Rank
MAA [NS] 245 106.86 -4.03 9
PETRONM 2538 22.83 30.1 19
HENGYUAN [NS] 2496 14.9 19.34 25
BERTAM 95 44.21 -10.39 29
MBWORLD 151 18.62 17.62 31
POHUAT 410 16.75 25.36 36
LIIHEN 622 14.09 28.87 37
TAMBUN 532 25.62 21.19 38
ALLIANZ [NS] 2536 11.82 11.35 43
MAGNI 1207 11.82 32.82 55
EITA 226 16.86 10.72 58
GADANG 808 17.48 14.09 59
DUFU 250 11.97 20.63 61
ARANK 130 16.3 16.39 65
MATRIX 1582 15.74 16.86 65
MITRA 913 17.4 20.13 65
SERBADK 2631 9.51 384.85 66
IDEALUBB 77 38.47 11.33 67
BHIC 534 13.61 25.46 71
LATITUD [NS] 509 17.48 15.69 73
LUXCHEM [NS] 588 11.33 20.58 81
JOHOTIN 421 11.57 16.54 82
FAVCO 628 17.75 13.08 83
KIMLUN 701 14.2 14.28 85
OKA 299 11.69 18.81 85
HOMERIZ 285 10.89 25.48 86
KEN 164 17.54 11.41 90
GKENT [NS] 1058 14.5 27.97 92
JAYCORP 199 15.03 14.63 93
HOHUP 273 19.72 19.88 94
BJTOTO [NS] 3086 11.51 17.31 94
SOLUTN 91 11.49 18.52 98
PRLEXUS [NS] 212 16.66 12.1 100
AWC 297 12.34 16.19 101
ECS 246 16.2 12.23 103
HEVEA 921 9.38 20.22 105
FAJAR 336 24.37 4.1 107
FLBHD [NS] 178 13.6 12.51 108
DKLS 171 12.45 10.72 109
BOILERM 464 11.75 13.47 110
GESHEN 171 11.35 14.1 111
PADINI 2796 8.05 32.22 112
ANNJOO 1611 13.27 16.23 113
ASTINO 298 15.41 10.09 114
TGUAN 543 11.44 13.63 114
MYCRON 226 24.82 9.23 115
UMSNGB 99 12.04 12.64 117
HARBOUR 276 19.8 15.68 118
MBL 95 14.06 11.77 119
MKH 1221 17.47 10.29 120
SUCCESS 406 14.04 11.59 120
AIRASIA [NS] 10861 8.23 13.69 120
KGB 149 9.66 13.97 121
LEONFB [NS] 241 13.49 10.72 125
SHL 697 13.13 10.91 126
MFCB 1430 13.4 11.87 129
LITRAK 3070 9.63 12.07 130
MARCO [NS] 152 13.84 10.28 130
LYSAGHT [NS] 158 10.75 12.23 131
SKPRES 1812 7.08 28.25 133
CSCSTEL 634 13.56 8.71 137
CVIEW 164 15.55 8.2 137
CHINWEL 563 10.96 13.43 138
IBHD 579 15.48 6.51 138
MIKROMB 146 8.0 20.54 140