{"id":1451021,"date":"2013-08-23T11:26:07","date_gmt":"2013-08-23T05:56:07","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=1451021"},"modified":"2013-08-29T10:04:45","modified_gmt":"2013-08-29T04:34:45","slug":"are-you-feeling-lucky-the-magic-formula-edition","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/08\/23\/are-you-feeling-lucky-the-magic-formula-edition\/","title":{"rendered":"Are You Feeling Lucky? The Magic Formula Edition"},"content":{"rendered":"

The markets have corrected a lot over the past couple of weeks. And some of you may be considering jumping in to \u201cbuy the dip.\u201d If a plain vanilla index\u00a0ETF\u00a0<\/a>like the\u00a0Nifty Bees<\/a>\u00a0is not your cup of tea, then you should consider “Magic formula investing” – an investment technique outlined by Joel Greenblat in his book “The Little Book that Beats the Market<\/a>.” This technique beat the S&P 500 96% of the time, and has averaged a 17-year annual return of 30.8%<\/p>\n

The formula is based on a simple, combined ranking of Return on Capital (previous<\/a>) and Earnings Yield (previous<\/a>). You invest in 20\u201330 highest ranked companies, accumulating 2\u20133 positions per month over a 12-month period. Re-balance the portfolio once a year, selling losers one week before the year-mark and winners one week after the year mark. Rinse-repeat.<\/p>\n

We went one step further and setup a Theme<\/a> that invests in NSE stocks that fit this criteria. Check out the “Magic Formula Investing<\/a>” theme – a portfolio of 10, equally weighted stocks for the value investor in you.<\/p>\n

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[stockquote]PRECOT[\/stockquote] <\/p>\n","protected":false},"excerpt":{"rendered":"

The markets have corrected a lot over the past couple of weeks. And some of you may be considering jumping in to \u201cbuy the dip.\u201d If a plain vanilla index\u00a0ETF\u00a0like the\u00a0Nifty Bees\u00a0is not your cup of tea, then you should consider “Magic formula investing” – an investment technique outlined by Joel Greenblat in his book … <\/p>\n","protected":false},"author":2,"featured_media":1451121,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[2481,2541],"class_list":["post-1451021","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-your-money","tag-quantitative-value","tag-theme","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/1451021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=1451021"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/1451021\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/1451121"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=1451021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=1451021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=1451021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}