Joel Greenblatt’s Magic Formula on Steroids

Joel Greenblatt is the founder of Gotham Capital, a hedge fund with extremely good returns. We like Greenblatt because he’s smart and not so secretive about his investment style. He’s authored two books, You Can Be A Stock Market Genius and The Little Book That Beats the Market.


In the The Little Book, Greenblatt describes a quantitative strategy – which he calls the “magic formula” — to pick stocks. It’s actually a very simple quantitative stock ranking scheme. It uses return on capital and earnings yield as inputs. Return on capital is the metric that shows whether a business is a good one or not. Earnings yield is the metric that shows whether a company is cheap or not. Greenblatt suggests using these measures to identify good but cheap businesses, and buy them.

Recently Greenblatt started implementing his “enhanced” magic formula, which was updated after rigorous quantitative research. Luckily for ordinary investors we have a delayed access to Greenblatt’s 13F portfolio which have stocks that are picked by the enhanced magic formula. Here are the top 50 stocks in Greenblatt’s 13F portfolio:

Read the rest of the article here>>>

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!