Last Updated on 9 January 2021 by F.R.Costa

At a time growth projections start being cut, uncovering value is more important than ever. Learn how to tweak Greenblatt’s Magic Formula to build a value portfolio. Article originally published at Master Investor Magazine January 2019 Issue 46 p. 48-53.

“Choosing individual stocks without any idea of what you’re looking for is like running through a dynamite factory with a burning match. You may live, but you’re still an idiot.”

Joel Greenblatt, “The Little Book That Beats The Market”

“With the peak of the economic expansion now looking like it is behind us, value strategies will come into their own. The Magic Formula is a good strategy to build a value portfolio for 2019.”

Joel Greenblatt’s Magic Formula is one of the simplest quantitative investment strategies ever developed. Any individual investor can implement it and set a long-term market-beating portfolio. In The Macro Investor column of this month at Master Investor magazine, I unfold a tweaked Magic Formula strategy to benefit from any upcoming turbulence.

About F.R.Costa

Filipe has more than 20 years experience with financial markets. He holds a degree in Economics with a specialisation in Finance and he's currently finishing a PhD in Finance. He used to work as financial consultant and research associate but then decided to return to academia five years ago. Since that, he has been an Invited Lecturer, teaching courses on Investments, Financial Markets, and Monetary Economics. He is also a regular contributor writer at The Master Investor Magazine.

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