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.