10 Best Magic Formula Stocks To Buy Now
Joel Greenblatt is an American value investor and hedge fund manager known for his investment strategy called “magic formula” investing. Greenblatt founded Gotham Capital in 1985 and presided over an annualized return of 30% from 1985 to 1994 by investing in special situations like spinoffs, tender offers, mergers, acquisitions and bankruptcies. Greenblatt currently serves as managing principal and co-chief investment officer of Gotham Asset Management. The fund’s portfolio is worth over $3.11 billion, as of Sept. 30.
What is Magic Formula Investing?
Greenblatt revealed his famous magic formula investing strategy in his bestselling book titled “
The Little Book That Beats The Market.” Greenblatt argued that stocks which have discounted valuations and high returns on capital can produce outperforming results for long-term investors. Greenblatt said in his book that his strategy produced back-tested returns of 30.8% per year from 19