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TrackJGreenblatt (84.24)

October 2007

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October 2007 MFI Purchase now active

October 15, 2007 – Comments (0)

How we* track Joel Greenblatt's Magic Formula: Every two months we generate a list of the top 25 stocks that have at least a $100 million market capitalization. We use Joel Greenblatt's MFI site at www.magicformulainvesting.com to generate the list. The resulting tickers are copied into www.random.org/lists/ to randomly rank the companies from 1-25 of which we select the first 6 stocks. If a stock already appears on TrackJGreenblatt CAPS page or is unavailable as a CAPS pick, the next stock on the list will be chosen. The selection is entered into Joel Greenblatt's CAPS page. Stocks will be held for one year then sold. Selections as of October 2007 can also be tracked in an www.icarra.com mock portfolio here.  [more]

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The new TrackJGreenblatt CAPS page

October 13, 2007 – Comments (0)

Who is TrackJGreenblatt? Joel Greenblatt is founder and managing partner of Gotham Capital, a hedge fund located in New York City. In the 10-year period from 1985 to 1995, the fund allegedly achieved a surprising 50% annualized return (before fees were taken out).  In his best-seller, "The Little Book that Beats the Market" he proposes an investment strategy which he calls "Magic Formula Investing". MFI focuses on "cheap" stocks of "good" companies, specifically, the formula looks for stocks with a high earnings yield (cheap price) that also earn a high return on invested capital (good business). Stock suggestions based on the Magic Formula can be found at www.magicformulainvesting.com, a free site set up by Greenblatt as an accompaniment to the book.    [more]

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