Magic Formula Investing

Magic Formula Investing

Last Updated: Mon, 22 Apr 2019 17:04:39

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
FPI* 1.7 419 7.42 12.06 146 7.5
UTDPLT 27.64 5749 6.74 14.73 147 13.4
SUPERLN 1.04 166 9.69 7.57 148 6.3
SUPERMX 1.5 2040 8.56 8.67 149 8.0
LAMBO [NS]* 0.105 220 6.72 14.66 150 3.6
FOCUSP [NS] 0.38 62 7.94 10.19 151 8.0
ATLAN [NS]* 4.47 1130 8.74 8.36 152 8.5
SURIA* 1.41 486 14.32 4.91 153 7.9
SERBADK 4.0 5872 7.19 12.1 154 13.8
DELEUM* 1.08 433 9.63 7.48 155 6.7
HOHUP 0.505 189 14.69 4.75 156 8.6
D&O* 0.695 767 7.72 10.12 157 7.6
IBHD* 0.43 435 11.72 5.98 158 6.7
UCHITEC* 2.85 1282 5.1 45.75 159 11.2
WPRTS 3.82 13026 6.44 14.29 160 10.3
AMWAY* 6.06 993 5.5 25.17 161 7.1
FPGROUP 0.38 196 7.38 10.98 162 7.5
BONIA 0.26 209 17.75 3.76 163 5.8