wikinvest Sr. Director
|last edit 2058||days ago|
One question I get asked a lot from readers is: "how do the MagicDiligence screens differ from the official Magic Formula screens?"
It is an excellent question. On average, the overlap from similar market cap/number of stocks between the two screens is about 70%, so that means that a little over 1 in 3 stocks are different between the two lists. Why is... read more
Anyone who has ever invested in the retail sector knows it is an up-and-down, volatile business.
These stocks can move 5-10% every month when monthly same store sales are released. Retail has low barriers to entry and few competitive protections, making competition intense. The history of retail investing is littered with one-time sector heavyweights that came crashing to the ground... read more
Magic Formula Investing (MFI),
as described by hedge fund manager Joel Greenblatt in
The Little Book that Beats the Market, consists of ranking stocks by earnings yield
(cheap) and return on capital (quality), adding the rankings together, and buying from the
resulting lists. Below are stocks that have moved into, and dropped out of, 3 of the MFI screens
used by... read more