Joel Greenblatt's Magic Formula Investing | ET Money

[@RohitSurw]

Thanks for another great video. What is the best way to check and track your investment portfolio's asset allocation? The tool/excel should allow us to track Stocks, MF, NPS, FDs, Gold/SGB, SSY, EPF and so on... How do you track all this at one place?

[@ETMONEY]

Hi. I use ET Money app for checking my MF allocation. So I've already uploaded my previous (non ET Money) folios and scheme units to the app. (tip: 100% of schemes didnt go through so I did a one-time check). Then I use only ET Money for my investing so that automatically gets tracked. When it comes to more assets like stocks, NPS, FDs etc., I prefer using an excel sheet. I dont need to track these everyday and do this activity once in 3-4 months, so this approach of using excel works well for me.

[@paragabhyankar962]

Thanks for another high quality content. Your videos helps us grow our understanding and thereby our wealth. :)

[@ETMONEY]

Happy to hear that! Keep learning and keep earning

[@ketanupasani709]

Thanks sir for this lovely video. I am putting the EBIT/EV formula in Screener, I wanted to know what value (Greater than/Less than) should I include with it for screening?

[@sreevathsabv9408]

Thanks for sharing this with us! Great explanation and presentation as always!

[@ETMONEY]

Glad it was helpful! Thanks

[@sachin_2601]

Wow, awesomeeeeeeee. Thanks 😊

[@ETMONEY]

Most welcome!

[@kaushiksinha2498]

Thanks for this wonderful content. Very well explained and insightful. Looking forward to more of such kind

[@ETMONEY]

Glad you enjoyed it! Thx for the appreciation

[@amar23]

Very awaited.Thanks very enlightening.

[@ETMONEY]

Our pleasure!

[@sureshraghava2607]

One more superb article.... Look for more such value added clippings. Thanks a lot !

[@ETMONEY]

Most welcome!

[@neelamvalecha4837]

Thanks Shankar ji. Very professional approach…!!!

[@ETMONEY]

Thanks and most welcome

[@prakashraghunathan2685]

This is another exciting video thank you very much Sankar sir.

[@ETMONEY]

So nice of you. Most welcome

[@rvarma83]

Always enlightening!!🙏

[@ETMONEY]

🙌 Much appreciated

[@Mohammedshaadkhan]

Thanks for your informative video

[@ETMONEY]

Our pleasure 👍

[@mukilan_3068]

Wheather ROCE and ROC are same or different

[@nabeelyahiya]

Tonnes of knowledge👌

[@ETMONEY]

Thx!

[@SunilChavan-yo6vd]

Thanks for your Information

[@ETMONEY]

Most welcome

[@mudassar1]

Is ROC and ROCE same metric?

[@bloodthirstyworks]

Amazing content as usual. Ty

[@ETMONEY]

Much appreciated!

[@naveengupta5314]

How to calculate Return on Capital? It will be very helpful if someone can explain with an example from actual balance sheet of a company.

[@ETMONEY]

Hi. We've covered the calculation in other videos.

[@naveengupta5314]

@@ETMONEY Can you please share the link of one of those videos?

[@biswanathpradhan7549]

Another valuable video 👍

[@ETMONEY]

Glad you enjoyed it. Thanks 👍

[@siddhantmd]

If magic formula works so well, why don't equity mutual funds give better annualized returns? Don't fund managers use the magic formula for picking stocks for their mutual funds?

[@ETMONEY]

I guess every fund manager has his/her preference. Some use growth, some value, some momentum, some special situations, some magic formula, some passive, some use technicals, some do trend-following, some opt for break-through innovation .. everyone has a strong-side and a weak-side.

[@siddhantmd]

@@ETMONEY thanks for your response!

[@mr.siddharthtyagi]

Read his book, the little book that beats the market, to get this answer. The reason is the formula didn't work in short term periods and people don't have the patience to see loss and believe in their strategy still

[@nagarajubandi3131]

Sir please🙏 suggest 1 debt fund for investment

[@ETMONEY]

Hi. Please check out ET Money app for excellent debt fund ideas which includes ratings and rankings

[@khoushiekram5287]

Thanks a ton for those insights ♥️

[@ETMONEY]

You are most welcome!

[@kaushiksinha2498]

Can you please suggest any investment products for salaried person other than equity or FD. As I never earn in equity at the end of year. I don't blame the product or market for that. Perhaps I couldn't digest the product. I am investing in FDs, PPF,SIP which are generating returns. On the contrary equity is draining money in lakhs. I had a huge loss in equity. So, please suggest.

[@ETMONEY]

Pls wait for a week, we have a video on alternative investments. Expected to be released this Wed or next Sunday

[@AI4Ever4Life]

Great video and builds curiosity. Does ET Genius's stock n ETF based portfolio leverage the magic formula to pick stocks?

[@ETMONEY]

Thanks. No, our stock portfolio uses price momentum and earnings quality

[@anirbanchoubey]

How can I back calculate the results for previous years in indian market?

[@mr.siddharthtyagi]

Sir there is a big challenge. If we want it to work as he said, we need to assign combined rank to thousands of companies and i can find no one who has the method/software to do so. A few companies won't work, we need a selection of 20-30 out of hundreds, who make a respectable rank out of thousands. Do you know of a way to get this rank? Otherwise it's ok. Use this just as a screener to get good recommendations and buy and sell according to yourself. But to work exactly that part is lacking.

[@ETMONEY]

I mentioned a few such screeners on this video I think. E.g. screener.in has a few magic formula screeners, so has moneycontrol and equitymaster. You can try those although I must say that everyone is using differently tweaked criteria and data might be different aswell (e.g. someone might use consolidate, someone might use standalone number, someone uses 12M trailing, someone uses last completed FY numbers etc.). I think smallcase might also have 1-2 such screeners.

[@mr.siddharthtyagi]

@@ETMONEY I'll look into it. Thanks a lot!

[@prasadrayannavar9117]

Informative video

[@ETMONEY]

Thanks

[@siddhantmd]

Hi! How does Genius stack up against the magic formula? I was hoping that you would talk about it at the end. Could you please share your thoughts on it?

[@ETMONEY]

No comparison. Genius is a multi-asset portfolio strategy while magic investing is an equity-only strategy.

[@siddhantmd]

@@ETMONEY Thanks for your reply. I meant that while choosing which stocks to purchase for the stock portfolios, does Genius use some variation of the Magic formula, or a totally different strategy? If different, then why?

[@ETMONEY]

@@siddhantmd We use earnings quality and price momentum primarily

[@siddhantmd]

@@ETMONEY Thanks. I don't understand these terms, but will learn about them.

[@rudrakumar9943]

Thank you sir

[@ETMONEY]

Most welcome

[@seshafarmspalmarosa1267]

Great video ji....

[@ETMONEY]

Thanks a lot

[@dailymotivational5977]

Good info brother

[@ETMONEY]

Appreciate it

[@ManasR]

Thank you 🙏. Excellent content.

[@ETMONEY]

Glad you enjoyed it!

[@rajkumarr4209]

You rockzzzzzz

[@venkateshvs2829]

HIS THEORY IS BASED ON INVESTING & NOT BASED ON SHORT TERM TRADING

[@rahulnagmal2999]

So magic formula stocks are good for trading ?

[@nipun384]

Good yt❤