JOEL GREENBLATT - THE LITTLE BOOK THAT BEATS THE MARKET - Magic Formula Investing.

[@FinancialWisdom]

My Brokerage Account (Interactive Brokers) - bit.ly/3UGvn1U My Breakout Scanner - bit.ly/3ea6sl8 My Forum - www.financialwisdomTV.com/forum My Strategy Blueprint - www.financialwisdomtv.com/plans-pricing Edgewonk Trade Analysis Software - bit.ly/3xS6S7s Stock Screener & Backtesting - bit.ly/3oO1exN (20% Off Code = FWSDM) Stockopedia - bit.ly/2YIcAIn (25% Discount)

[@lupixxx]

Is it just me, or the magic formula is not shown anymore in the detailed report?

[@ab-mk6js]

Great summary. Simple enough for beginners to try, realistic enough to expect positive results.

[@FinancialWisdom]

Glad you enjoyed it!👍

[@mudassar1]

I read the book and in the end he has also mentioned that instead of ROCE you can also use ROA>25% instead of ROCE (replacement of ROCE).

[@loganlaj]

Another video with tremendous value in it!! Keep them going!

[@FinancialWisdom]

Thanks Logan, Your support is really appreciated..

[@MagicalStocks]

Thank you for this video. I am currently using magic formula investing in Philippine Stocks Exchange and got a gain of ~26% in one month. Hoping to get the target of 30% before the year ends :)

[@FinancialWisdom]

Fantastic!

[@magnuswahlberg3133]

This works. Academic research suggests that adding a momentum criteria (3 mths) not only adds performance, but also decreases fluctuations.

[@RonaldSeese-sx4ow]

Can you please explain how you do that? Thanks.

[@williamkz]

Thanks Gareth. Plenty to think about. I like the way you tied it in with the Stockopedia ranks. Extremely helpful - as always.

[@FinancialWisdom]

Thanks again William...

[@markcaz]

Thanks for the video! In more recent videos you shared specific strategies for investing in FANG, gold, and bitcoin. Usually this involved looking at the MACD or other moving averages. What would be a good strategy for these Magic Formula stocks to avoid drawdown to help improve performance? (or lessen drawdown to use leverage?)

[@FinancialWisdom]

Selling at a cross of the 20 week MA would be a good start

[@cagrikanik2403]

This book is quite simple and could be also enough for most of the small investor. I believe it should work in long term surely

[@FinancialWisdom]

Thanks Cagri👍

[@NoRegertsHere]

The capital gains tax removes 15-45% of the yearly returns in Australia, depending on the marginal tax rate and greater or less than 12 months.

[@sleepless2541]

@@NoRegertsHere 15 to 45 oof, am employing the formula here north of yall aussies and am only payin 0.48% in annual trading/rebalancing fees, that includes brokerage and taxes already

[@chrisgdav]

Hi, I have the book. For clarity, if I bought a stock for $5 and it grew to $10 by the end of the year, I should hold on to the stock right? On the same end If I bought a stock for $5 dollars and it dropped to $2 dollars at the end of the year, I should sell the stock correct?

[@Giri_Babu.]

Thank you. Very much useful content in the channel.

[@FinancialWisdom]

Glad you found it useful Giri - Thanks.

[@brandonsmith8017]

I'd be interested to see the magic formula results back tested from 1980-present.

[@GiMeHope]

I can recommend the book The Acquirer's Multiple by Tobias Carlisle where he compares the multiple with the results from The Little Book That Beats the Market from 1973-2017

[@papabear4066]

Excellent analysis! Channel subscribed.

[@FinancialWisdom]

Thanks papa

[@miguelresende5581]

The Acquirer Multiple would make a good video ☺️

[@FinancialWisdom]

Already noted👍

[@NirHason]

Thanks for the great review. So once I picked my top 10 stocks, using these strategy, I’m going to keep the same 10 stocks in my portfolio for the long term investment and want replace them with other companies that may be better five years from now, if I’ll do the same Ranking again?

[@baranjan4172]

the book says you hold them for 1 year, then sell. rinse, repeat.

[@samyjo125]

Great video as usual! Just one question - does stockopedia show you the current magic formula score only? Or could you see historic magic formula scores for a given stock?

[@FinancialWisdom]

Hi samy, you can get historical but would need to bring up the monthly report stock for each month

[@elliemarie2426]

Another great video!!

[@FinancialWisdom]

Thanks Ellie

[@jj3053]

Another concise, excellent ,insightful summary ( I'm new to your channel ) : thank you !

[@FinancialWisdom]

Awesome, thank you!👍

[@jj3053]

@@FinancialWisdom ( I have just ordered a copy of the book ) 👍🏻

[@FinancialWisdom]

great stuff👍

[@boombustinvest]

So do you use this method for your personal portfolio?

[@FinancialWisdom]

I do use piotroski

[@yasenbonev7879]

Great videos! Do you plan to do book reviews more related towards investing mindset and successful life in general? I am mainly talking about Trader Vic's books as they've made great impact on me.

[@FinancialWisdom]

Possibly!

[@darshanachar5726]

Amazing

[@FinancialWisdom]

Thank you! Cheers!

[@kiraskonomitips1463]

What about the Acquirers mulitiple?

[@FinancialWisdom]

Ill add to the list, thanks👍

[@TommyCarstensen]

Here is the official website from Joel Greenblatt: magicformulainvesting.com

[@FinancialWisdom]

Thanks Tommy.

[@stevedice5963]

looks like my brokerage bank- charles schwab lets you build custom stock scanners at no charge!

[@satisfyinglook8291]

Good video

[@FinancialWisdom]

Thanks EI

[@darkmanx2g]

Would this work evenly on m1 finance?

[@FinancialWisdom]

I guess so, so long as stock selection is in line with the criteria set...

[@bullet1900]

Good review.. Not sure if it will work, but can you make the video longer and give more in dept info? like 20 mins minimum : ) Thanks

[@FinancialWisdom]

Noted!👍

[@jayajai1170]

Interesting

[@FinancialWisdom]

Thanks

[@statistics.interdegree7654]

Very good. Must be bit more detail

[@FinancialWisdom]

Ok next time

[@bbeckshrestha7789]

Why financial institutes are excluded in magic formula?

[@sleepless2541]

financials and utilities are excluded due to the differences in capital structure for firms within the sectors, that would lead to skewed/abnormal ratios output

[@thequintessentialist]

Lol, go back and look at the performance of these top magic formula stocks since Jan 2020. Maybe this formula doesn't work with the LSE 😬

[@arashnouri3219]

You must mention that the author, has a website, designed precisely for scanning stocks! It’s disappointing that you use this opportunity only and only for advertising

[@jbaruch77]

Name?

[@arashnouri3219]

@@jbaruch77 magicformula investing has its own website that was also mentioned in the book. I tried to put the link for you but my previous comments were removed!

[@GiMeHope]

I find that this KZbin channel is mostly interested in getting trafic and paid memberships on his website and his software

[@osu122975]

Terrible advice for investing. You'll ALWAYS be a year behind. This is good advice for those who wanna give their money to those who do actual research.

[@Meaty33]

Is this channel just a copy of the swedish investor?

[@FinancialWisdom]

Hi Robert, no we use the same software and my focus is weighted more on trading than investing

[@Meaty33]

@@FinancialWisdom thank you for responding and clarifying.

[@zephyr3611]

this channel better :)

You could get this yield over 10 years by just buying Bitcoin now and hold them. No trading, just leave it in your wallet or a custodial service.

[@FinancialWisdom]

Perhaps I'll complete a bitcoin book soon...

[@TraderLobo]

That's true. But I think the proposal of this channel is to help traders to performance better than they are with solid reviews from professionals about strategies and risk management. At least, it's helping me a lot. Not just "profit more buying this or that".

[@reheyesd8666]

Why didn't anyone else think of that? Just buy into an asset 99.999% of people haven't heard of at the time.