What Is Magic Formula Investing? Magic Formula Investing is an investment technique that uses a set of quantitative metrics to identify quality businesses available at a discount. It is a systematic ...

Does the Magic Formula really work? A breakdown of the performance of the Magic Formula compared to my own variation. Words of wisdom from Greenblatt on investing and producing alpha. Resources to ...

The Magic Formula is an abstract thought experiment, the parameters of “cheap” and “good” are both simplified. “Cheap” is taken to mean that a company, compared to other companies, trades at a price ...

Joel Greenblatt’s Magic Formula method of investing has outperformed the S&P500 over time. Understanding the metrics used in the Magic Formula can be instructive when investing in individual stocks.