I’m always a little skeptical of any stock market screen called a “magic formula,” but I do like to consult Joel Greenblatt’s screener by that name from time to time. Greenblatt, who made the screen famous in his book The Little Book that Beats the Market ranks stocks using two criteria: Valuation, as measured by...Read More

It’s hard to take something called a “Magic Formula” seriously.  But you should.  It’s beaten the market by a wide margin over the past two decades and with less volatility. The Magic Formula—a stock screener designed by hedge fund guru Joel Greenblatt –ranks stocks by two factors: Profitability (based on Greenblatt’s chosen metric, Return on...Read More