Ten Top Joel Greenblatt Magic Formula Stocks – Validea's Guru Investor Blog
The Magic Formula, introduced in “The Little Book That Beats the Market,” simplifies the complexity of stock selection into a straightforward two-part analysis. At its core, the method examines Return on Capital, which measures how well a company converts its resources into profits, and Earnings Yield, which indicates whether a stock’s price is low compared to its earnings potential. This approach stands out by combining these metrics into a ranking system that automatically identifies two… Read More
