As recommended on this site, I just purchased and read Joel Greenblatt’s book “The Little Book that Beats the Market”.
Great read and I appreciate it. I am curious about something related to P123 though.
When I go to his website www.www.magicformulainvesting.com and I run his screen for the top 30 stocks that have a market cap over 50 million, I get quite different results than when I run a screen in P123 using the preset that has been created for his ideas on this website.
Any ideas?
Thanks!
Chris
www.magicformulainvesting.com uses a slightly different strategy that the public screen. The screen has additional rules that the original Magic Formula didn’t have. On a related note, no one to my knowledge has been able to duplicate the results of the Magic Formula study exactly. They usually got returns that were very good but still significantly less that the study indicated.
Ya, that is what is strange. The returns are just how you say. Decent, but no where near what he is stating in the book.
Chris