Magic Formula Experience

One of the compelling things about the Magic formula is how well-defined the buying and selling is. Unlike other investment strategies, Magic Formula investing not only gives you a list of stocks to buy, it also details a clear time frame for buying and selling your stocks. "Selling" is in italics because other services make stock picks, but knowing when to sell is often the … [Read more...] about Managing Your Portfolio. Easy, right?

One of the things I love about the strategy detailed in The Little Book that Beats the Market is that the stocks to buy are chosen based on a specific formula, and Joel Greenblatt, the book's author, has already put together a free site that identifies these stocks for you so you don't even have to run the formula! You get your portfolio designed for you automatically. What … [Read more...] about Don’t Just Buy those Stocks!

It's no surprise that Joel Greenblatt's book The Little Book that Beats the Market became a best-seller. Not only is the book an easy-to-read, enjoyable introduction to Value Investing, but it also gives compelling evidence that it is not just possible but quite probable that the average retail investor  will outperform the S&P 500 index over time by following the … [Read more...] about Eaten Alive by Fees

This post deals with some of the finer points of using the screener on MagicFormulaInvesting.com. As with many aspects of the strategy the usage seems so simple and straightforward, yet anyone who digs into it will realize there are devils in those details. And there are points I wanted to bring up to generate discussion. First of all, you have to create an account to use … [Read more...] about Using the Screener