Investing is most intelligent when it is most businesslike - Benjamin Graham (1894-1976)
____________________________________________________________________
Value-Stock-Plus stands at No. 50 in the list of Top 100 Finance Blogs by ValueWiki
Recognised by The Economic Times as one of the most popular financial blog
Updated! Compilation on
Warren Buffett,
Rakesh Jhunjhunwala
& Charlie Munger
____________________________________________________________________
« Home | Follow the loser and become a winner »
Here are some of the interesting links on "Magic Formula Investing" concept by Joel Greenblatt. 1. Magic Formula Part 1 2. Magic Formula Part 2 3. Magic Formula Part 3 4. Magic Formula Part 4 5. The Most Magical Formula of All 6. Most Magical Formula of All - Bull Market Component
Personally I think Greenblatt’s screen is a fine START. I believe it’s important to do further research. The results this year of the random selections are not that exiting. I believe this will continue in the coming years. This because of the –unexpected- rise in commodity prices over the last years.
By this many commodity companies have high returns on invested capital and high earnings yield, which make them to appear on the Greenblatt-screening, although they lack durable competitive advantages. As a starter for further research, I recommend screening on ROC and EY (like Greenblatt) and I also advice to read his book, The little book that beats the market.
Success in investing,
Hendrik Oude Nijhuis
www.magicformulastocks.com
Posted by
Anonymous |
10:47 PM