Sentences with phrase «magic formula stocks»

Our screener scans all major American, European, Asian and Oceanian markets for Greenblatt magic formula stocks, low price - to - book with high Piotroski F - Score stocks, O'Shaugnessy trending value stocks and many other market beating models.

He is looking for the average performance of a basket of magic formula stocks not a specific stock that has meet the magic formula criteria.

What about shorting bottom - decile Magic Formula stocks.

The Magic Formula stocks, on the other hand, often look cheapest at the top of the market.

We're hopeless business analysts, and we think one needs to be a reasonable business analyst to pick Buffett / Magic Formula stocks (which we recall K - Swiss has been for some time) rather than just buying a basket of Magic Formula stocks.

Ask the question somewhere else and they probably recommend their own strategy; which could be buying owner operators, compounders, cheap value stocks, magic formula stocks, swing trading, forex trading, and whatever else exists.

Sohu.com, while not an «official» Magic Formula stock, has a bargain valuation against it's significant growth potential in China's nascent online advertising and gaming markets.

Not exact matches

To summarize, here are the tools I use while looking for stock ideas: Value Line (Great info all on one page - great place to hunt for ideas) Morningstar, Magic Formula, Google Spreadsheets (for screening and watchlists) Spinoffs (I keep a watchlist of spinoffs and research them individually) 13 - F's (I go through a few filings from value managers I follow) Blogs (Great -LSB-...]

The Quality and Price strategy, like the Magic Formula, seeks to differentiate between stocks by equally weighting the quality and price metrics.

The Magic Formula diverges from Graham's strategy by exchanging for Graham's absolute price and quality measures (i.e. price - to - earnings ratio below 10, and debt - to - equity ratio below 50 percent) a ranking system that seeks those stocks with the best combination of price and quality more akin to Buffett's value investing philosophy.

Whether you read the newspaper or follow the news in some other way, you'll usually know what's «wrong» with most stocks that appear at the top of the magic formula list.

This brief examination of the Magic Formula and its generic academic brother Quality and Price, shows that analyzing stocks along price and quality contours can produce market - beating results.

Many self - managed investors got discouraged after the magic formula strategy underperformed the market for a period of time and simply sold stocks without replacing them, held more cash, and / or stopped updating the strategy on a periodic basis.

Wes et al have set up an experiment comparing the performance of the stocks selected by the investors on the VIC — arguably the best 250 special situation investors in the US — and the top decile of stocks selected by the Magic Formula over the period March 1, 2000 through to the end of last year.

Posted in Stocks, tagged James Montier, Joel Greenblatt, Magic Formula, The Little Book That Beats The Market on May 9, 2012 10 Comments»

3) You can follow the magic formula, and buy stocks that have high returns on equity and low P / E ratios.

There is not magic formula for evaluating share price in stock investment.

Some of the best values in the vice sphere are in the «merchant of death» category, and the next stock is one that I covered in «Five Smart Money Dividend Stocks» as a stock owned by Magic Formula guru Joel Greenblatt: defense and aerospace firm Northrop Grumman Corporation ($ NOC).

He also shows how buying the top 10 % of stocks in the market as ranked by the magic formula have outperformed the rest of the market and the returns of each successive group outpeform the lower groups.

Joel Greenblatt has researched on the top stock picks using this magic formula and found consistent good returns over long term.

Joel Greenblatt develops a «magic formula» that uses return on capital (ROC)(namely, EBIT / Tangible Capital) as a key metric to select quality value stocks.

This is a Joel Greenblatt Magic Formula - type of stock selection but with a quality bent.

Posted in Stocks Tagged James Montier, Joel Greenblatt, Magic Formula, The Little Book That Beats The Market 10 Comments

-LSB-...] Value Versus The Market Since: The Magic Formula Effect Theory is that value strategies are now so well known and easy to implement that undervalued stocks are completely picked over, and the only cheap stocks left are value traps.

Posted in Quantitative investment, Stocks, Strategy Tagged Joel Greenblatt, Magic Formula, The Little Book That Beats The Market 1 Comment

According to Gray and Carlisle, a portfolio of stocks sorted only on the cheapness metric achieves an astounding return of 15.95 % a year and outperforms the two - metric magic formula by more than 2 % per year.

The ERP5 ranking is our home - brewed ratio based on the magic formula and ideas by the father of value investing and stock screening in general, Benjamin Graham.

A company with a magic formula score of 100 is in 100th position out of the stock universe of your last screen.

Check out Joel Greenblatt Stock Screener or start finding value stocks using the «Magic Formula» investing strategy you can register for a free account here.

The magic formula given by the author is an efficient way of selecting the stocks.

He basically tells you to use his very simple formula «Magic formula» when investing in stock markets.

Examination of Gummy's Magic Sum formula shows that stock returns and Safe Withdrawal Rates are intimately connected.

The book «The little book that beats the market» describes a «MAGIC FORMULA» for selecting stocks.

There is no single magic formula that will give you a certain answer to whether you have chosen the right stock.

John Mihaljevic presents 9 distinct types of value investment ideas, and how to screen for them: 1) deep value, 2) sum - of - the - parts value, 3) Joel Greenblatt's Magic Formula, 4) jockey stocks, 5) follow the leaders, 6) small stocks, big returns, 7) special situations, 8) equity stubs, and 9) international value investments.

Wes thinks that the outperformance of the Magic Formula is due to small cap stocks, which he tests in a second post «Magic Formula and Small Caps — The Missing Link?»

Posted in About, Behavioral economics, Enterprise Multiple, Stocks, Strategy, Warren Buffett, tagged Enterprise multiple, Enterprise Value, Joel Greenblatt, Magic Formula, Stocks, Strategy, The Little Book That Beats The Market, Value investing on May 7, 2012 17 Comments»

So the Magic Formula generates alpha, and beats the market globally, but not by as much as Greenblatt found originally, and much of the outperformance may be due to small cap stocks.

The Profit and Value approach is similar to the Magic Formula in that it ranks stocks independently on «value» and «quality,» and then reranks on the combined rankings.

Posted in About, Behavioral economics, Enterprise Multiple, Stocks, Strategy, Warren Buffett Tagged Enterprise multiple, Enterprise Value, Joel Greenblatt, Magic Formula, Stocks, Strategy, The Little Book That Beats The Market, Value investing 17 Comments

Read more about 12 Dividend Growth Stocks That Meet My «Magic Formula for Dividend Growth Investors»

With this article I will present 12 dividend Read more about 12 Dividend Growth Stocks That Meet My «Magic Formula for Dividend Growth Investors» -LSB-...]

Simple value screens like Joel Greenblatt's «Magic Formula» have beaten the market by a wide margin, and research has shown that a strategy of screening stocks based on simple momentum criteria also beats the market over time.

To summarize, here are the tools I use while looking for stock ideas: Value Line (Great info all on one page - great place to hunt for ideas) Morningstar, Magic Formula, Google Spreadsheets (for screening and watchlists) Spinoffs (I keep a watchlist of spinoffs and research them individually) 13 - F's (I go through a few filings from value managers I follow) Blogs (Great -LSB-...]

What might be reasons NOT to do it (besides trying to make a better Magic Formula or cherry - pick stocks from it, which for almost all individual investors will turn a good thing bad due to behavioral bias).

Instead of sitting on cash waiting for a crash scenario to play out, I'm into foreign stocks, typical netnet plays (domestic and foreign), microcap magic formula style candidates, etc. and beaten down financials.

My concern is that the All Seasons portfolio is presented as a magic formula that will dramatically outperform a traditional stock - and - bond portfolio with far less risk.

Posted in About, Quantitative investment, Stocks Tagged Book value, Joel Greenblatt, Magic Formula, Quant Investing 33 Comments

The problem with magic formula companies is that too many of the stocks in the top 50 are value traps whose business models aren't sustainable, and are on the list when the past 12 months is a poor predictor of future returns.

Another critique of the Magic Formula is that it tends to pick cyclical stocks at the top of the cycle.