Magic Formula Investing – Myth or Reality?
For most investors, spending two hours to learn how to beat the market would sound like a great deal. Writer, professor, and hedge fund manager Joel Greenblatt of Magic Formula Investing tells investors how to do it.
The Little Book of Magic Formula Investing
In The Little Book That Beats the Market, Joel Greenblatt explains how successful investing is made easy for investors of any age. The Little Book That Beats the Market is jammed packed, full of fun anecdotes and sound financial advice. Greenblatt explores the principles of good stock market investing and reveals his own successful magic formula for investing that makes buying worthwhile companies at bargain prices automatic.
Greenblatt’s Magic Formula for Investing in a Good Buy
In his book, Joel Greenblatt explains that his magic formula for investing has been tested and is a real breakthrough. Greenblatt is able to explain himself well using both, academic and professional examples for his formula. He doesn’t assume the reader is an expert by any means and uses sixth grade math skills, an easy to understand style and humor to guide, even the novice investor through his theories.
His Journey to Magic Formula Investing
Born in 1957, Joel is originally from Great Neck, New York. Joel Greenblatt is not just the founder of Magic Formula Investing. He’s also the managing partner and founder of Gotham Capital, which is a private investment partnership that achieved outstanding returns since it came into being more than 20 years ago in 1985. Greenblatt is also an adjunct faculty member of Columbia Business School. He holds a B.S. and an M.B.A. from the Wharton School. He was the chairman of the board of Alliant Techsystems at one time and is the founder and creator of the New York Securities Auction Corporation.
The Value Investors Club is a website that he started. This is a place where investors who have been approved through an application process can exchange value investment ideas and strategies. The website awards $5000 to members who submit the best idea, each week.
Greenblatt is well known also for his donations to education in New York City. Joel Greenblatt donated $2.5 million to a public elementary school in Harlem where students came largely from the neighborhood’s South Asian immigrant and South American communities. Referring to it as an investment this donation was equal to about $1000 for each student, per year over a period of five years and helped the school become an urban success story. Joel also serves as a board member for the Institute for Achievement.
Magic Formula Investing-The Website
The website www.magicformulainvesting.com is a great combination to the book The Little Book That Beats the Market since it shows a working model of the stock screen, Joel’s column, and a video and written explanation for how rating top-ranked stocks works.
The magic formula investing website states that it is not a brokerage firm, investment company, or registered investment advisor, but there is advice on how to select stock including a calculator.