Magic Formula--- Joel Greenblatt
ER
Tags:
(Chimp, 8
Points)
on 7/18/12 at 12:27pm
http://www.magicformulainvesting.com/
key:
1. bargain price
2. good economics/business
how to find bargain price?
--- low p/e, have a basket of bargains
--- high ey and high roc






I got it, you got it. We've
I got it, you got it. We've got the magic baby
Baby you're the perfect shape, baby you're the perfect weight. Treat me like my birthday, I want it this way and I want it that way. It makes a man feel good baby.
I'm on board with Joel and
I'm on board with Joel and hoping to take his class soon at Columbia.
What is the point of this post, though?
I get the impression that
I get the impression that there are a lot of funds out there that are holding what they consider to be a lot of "50 cent dollars" and to be great value buys. I get the impression that 75% of managers dont get over the average market returns in any given year.
“...all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”
- Schopenhauer
A lot of those managers talk
A lot of those managers talk about value but they are really closet index hugging wimps afraid to veer to far from their peer group for fear of losing their jobs. You never got fired for losing with IBM as the saying goes...
seabird: I get the impression
I get the impression that there are a lot of funds out there that are holding what they consider to be a lot of "50 cent dollars" and to be great value buys. I get the impression that 75% of managers dont get over the average market returns in any given year.
Isn't that the trend in value investing in today's environment? Finding broken stocks in companies that are still viable, but the weak equity markets haven't caught on.
Baby you're the perfect shape, baby you're the perfect weight. Treat me like my birthday, I want it this way and I want it that way. It makes a man feel good baby.