Magic Formula Investing

Last Updated: Fri, 10 Jul 2020 17:01:48

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%.

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Stock Last Price Market Cap EY ROIC Magic Rank Total Score
SIGGAS 0.435 81 1.0 77.89 1 7.0
CANONE* 2.73 524 1.11 22.99 3 8.9
PARAMON* 0.895 542 0.31 22.44 5 10.0
MBWORLD* 0.985 154 0.36 14.99 6 6.7
ASB [NS] 0.145 134 0.34 14.12 7 5.3
LIIHEN* 2.67 480 0.18 20.8 8 9.5
INTA 0.225 120 0.18 15.41 9 5.7
MATRIX* 1.82 1368 0.18 13.95 10 10.5
HOMERIZ 0.585 175 0.16 15.25 11 8.7
CARIMIN* 0.655 153 0.17 13.86 12 7.1
POHUAT* 1.16 270 0.19 12.76 13 6.1
ALLIANZ [NS] 13.92 2449 0.2 12.64 14 8.0
RGB [NS]* 0.14 215 0.18 13.01 15 4.6
EWEIN 0.3 90 0.43 10.2 16 5.1
MAGNI* 2.22 963 0.13 20.02 17 10.1
MELEWAR 0.215 77 0.5 9.26 18 5.5
DBHD 0.385 122 0.19 11.82 19 5.5
MASTER 1.86 100 0.15 14.33 20 9.1
SYMLIFE* 0.375 221 0.48 9.04 21 5.7
FAJAR 0.345 128 0.28 9.79 22 9.0
HOHUP* 0.525 216 0.26 9.71 24 8.8
DAYANG 1.28 1358 0.17 10.28 27 7.4
PENERGY* 0.75 240 0.16 11.09 28 4.5
EITA 1.22 158 0.15 11.93 29 6.5
AGES 0.155 53 0.43 8.2 30 5.5
ZECON 0.585 84 0.5 8.04 31 7.2
KHIND 1.6 64 0.24 8.67 32 8.3
LITRAK 4.19 2208 0.12 15.87 33 9.2
VSTECS* 1.83 329 0.16 10.23 34 9.9
BAT [NS] 10.58 3015 0.1 87.07 35 6.2
MBL 1.53 156 0.13 13.2 36 11.4
PCCS 0.375 78 0.21 8.43 37 7.4
SAMCHEM [NS] 0.73 198 0.13 13.45 38 8.7
ASTRO [NS] 0.84 4379 0.13 13.7 39 5.5
KSL* 0.605 627 0.37 7.81 40 5.1
JAKS* 0.93 598 0.18 8.81 41 5.9
BIMB 3.55 6262 0.13 11.91 42 8.6
FAVCO* 2.3 508 0.15 10.18 43 6.1
TEOSENG* 0.895 268 0.14 11.09 44 4.5
DBE 0.03 80 0.1 17.09 45 5.0
TAKAFUL 4.53 3732 0.1 22.09 46 10.1
IDEAL* 1.22 134 0.38 7.36 47 6.3
BAUTO 1.42 1651 0.09 30.0 48 4.9
JAYCORP 0.965 132 0.16 8.68 50 7.8
MBMR* 3.19 1246 0.15 9.74 51 7.0
ARANK [NS] 0.42 71 0.17 8.31 52 6.6
KKB* 1.68 433 0.11 13.69 53 7.2
FPI* 1.46 360 0.12 12.03 54 10.3
OMESTI* 0.575 274 0.1 14.15 55 7.4
BOILERM* 0.545 281 0.11 12.19 56 5.4
EUPE 0.52 66 0.45 6.5 57 5.1
KNUSFOR 0.75 74 0.24 7.21 58 8.2
TADMAX* 0.3 234 0.18 7.86 59 7.8
OSK [NS] 0.815 1707 0.22 7.32 60 4.9
MBSB [NS] 0.61 3897 0.16 8.35 61 4.3
BTECH 0.375 94 0.13 10.23 62 9.2
KERJAYA* 1.07 1327 0.11 13.06 63 7.0
PPHB* 0.705 132 0.16 8.19 64 8.1
BPPLAS 1.18 220 0.11 11.89 65 8.6
KOBAY 1.84 187 0.12 10.38 67 9.9
TGUAN* 4.37 594 0.13 9.81 68 13.4
HLIND 7.98 2609 0.1 14.23 69 5.9
BCB [NS] 0.32 131 0.37 6.4 70 7.6
PADINI 2.39 1570 0.09 18.67 71 6.3
KIMLUN* 0.745 246 0.22 6.6 72 5.5
PTARAS* 2.57 424 0.1 12.89 73 6.6
GCB 2.81 2833 0.09 21.47 74 11.0
CIHLDG* 1.19 192 0.13 9.42 75 4.1
THRIVEN 0.235 120 0.15 7.94 76 7.6
FOCUSP 0.435 95 0.1 13.75 77 9.2