Magic Formula Investing

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Dec 14, 2009 9:48 pm

Anyone ever look at Joel Greenblatt's Magic Formula Investing? (www.magicformulainvesting.com)

 
The strategy is pretty sound, but I have never looked at it in detail.  It's basically a quant value approach to picking individual stocks based on specific value metrics.  There's a lot of churn in the portfolio, so you would have to be doing basket trades or something to minimize ticket charges.
 
Just curious who's looked at it.
Dec 14, 2009 10:57 pm

wow



u see the sign-up form?



"let us do it"



send them cash and they start trading.   interesting



     

Dec 15, 2009 7:31 am
Shania Twain:

wow

u see the sign-up form?

"let us do it"

send them cash and they start trading.   interesting

     

 
What is interesting is your picture.
Dec 15, 2009 7:34 am
bondo:
Shania Twain:

wow u see the sign-up form? "let us do it" send them cash and they start trading.   interesting      



What is interesting is your picture.





good call



she flips my skirt



she digs me, also

Dec 15, 2009 8:19 am
BioFreeze:

I already have a magic formula: When the market goes up, you make money. When the market goes down, you don't lose money. 



When the insurance company goes out of business you lose all your money.

When you need your money you lose 8%

DD

Dec 15, 2009 10:26 am

I had looked at the concept about a couple of years ago. At the time, he wasn't actually handling assets himself, and he specifically and repeatedly commented that any holdings should be for a year and a day.

 
I tracked some of the recommended holdings and they did alright. However, (and I can't recall the specifics) the very nature of his filters automatically exclude certain asset classes. I want to say at least one was utilities.
Dec 15, 2009 10:29 am
LockEDJ:

I had looked at the concept about a couple of years ago. At the time, he wasn't actually handling assets himself, and he specifically and repeatedly commented that any holdings should be for a year and a day.

 
I tracked some of the recommended holdings and they did alright. However, (and I can't recall the specifics) the very nature of his filters automatically exclude certain asset classes. I want to say at least one was utilities.
 
Yeah, my concerns would be portfolio turnover (in taxable accounts) and concentration.  However, this would not exclude asset classes, only certain industries.  This would be primarily for large cap domestic stocks.
Dec 15, 2009 11:57 am

funny

does it surprise you
 
the fine print on return crap like that is so laughable
 
"our returns represent my moms account starting oct 1987"
 
Dec 15, 2009 12:22 pm
mlgone:

Geez what a great track record  Well chosen time frame

 
 

Formula Investing Composite Returns (Net) vs. S&P 500 May 1, 2009 through September 30, 2009
 
You have to look at the backtested results.