Value investing could use a magic, conservative, and/or Piotroski F-score formula to beat the market
By Hicbd
Thu Aug 25 2022 10:30 am
"Magic formula investing is an investment technique outlined by Joel Greenblatt that uses the principles of value investing...cheap stocks with a high earnings yield and a high return on capital...A 2017 study from the markets in Sweden found application of the Greenblatt formula resulted in long-term outperformance of market averages in the periods 2005 to 2015, and 2007 to 2017. The authors also found the "magic formula" was also associated with short-term underperformance in some periods, and significantly increased volatility."
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