Reblog: What Investing Legends Do When the Stock Market Stumbles


Stocks have been all over the map this week.

Here are some top investing tips to consider amid the market volatility.

Ben Graham

Widely regarded as the “father of value investing,” Graham’s surgical analysis of stocks made him and his clients a great deal of money. But before he became Warren Buffett’s mentor or earned Wall Street’s reverence, Graham lost most of what had already become a small fortune in the stock market crash of 1929 and the ensuing Great Depression. It was then that Graham learned a hard lesson about risk-taking.

After that, Graham became one of the first to make investments based solely on financial analysis. Before his death in 1976, Graham’s philosophy was simple: invest in companies whose shares trade below the firm’s liquidation value. He implemented smart analysis of market psychology, investing by numbers when others did so by fear or greed.

Continue Reading


Reblog: The ‘Magic’ Formula to find multibaggers


Magic – That’s what you need to get multibagger returns and beat the market consistently, and that’s what the Magic Formula is supposed to do.

As a result of brilliant marketing, promotion and becoming a New York Times bestseller in 2005, Joel Greenblatt has turned the Magic Formula into a key strategy for many in the value investing and mechanical investing community.

Buy at least 20 stocks from the Magic Formula screener and then re-balance at the end of the year. Do this and you will beat the market, the book says.

Greenblatt wrote The Little Book that Beats the Market for his children who were aged between 6-15 at the time.

Continue Reading