Joel Greenblatt: The Two Parts Of The Magic Formula

Joel Greenblatt is best known for his Magic Formula, an investment technique that combines quality and value. Greenblatt’s own research shows the magic formula investing strategy averaged 24% returns per year between 1988 and 2009. Q4 hedge fund letters, conference, scoops etc If you’re looking for value stocks, and exclusive access to value-focused hedge fund managers, check out ValueWalk’s exclusive value newsletter, Hidden Value Stocks According to Greenblatt, the Magic Formula can be broken down into two component parts, “what you pay” and “what you earn” according to a transcript of his Special Situation Investing Classes at Columbia University Business…