Magic Formula Investing

Magic Formula Investing

Last Updated: Thu, 23 Nov 2017 17:16:19

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 Last Price Market Cap EY ROIC Magic Rank
FAREAST 9.2 1300 9.15 9.53 190
HARBOUR 0.725 290 11.32 6.99 190
OCNCASH 0.7 156 7.52 13.03 190
SCIENTX 8.7 4177 7.24 13.61 190
ANNJOO 3.68 1854 10.15 8.4 190
AHEALTH 5.2 609 7.88 11.79 192
KERJAYA 3.99 2145 6.97 13.64 193
NTPM 0.66 727 9.16 9.31 194
DEGEM 1.0 130 38.96 4.72 195
ORNA 1.36 100 11.68 6.4 196
RHONEMA [NS] 0.91 151 9.68 8.61 196
PETDAG 23.5 23338 5.55 28.3 198
OLDTOWN 2.46 1139 6.42 15.18 199
AYS 0.49 186 11.56 6.38 199