#88 - MAGIC FORMULA INVESTING STRATEGY FOR BEGINNERS

<p>[podcast_subscribe id="111"]</p> <p>Timestamps:</p> <p>Intro: 00:00</p> <p>What is it?: 00:23</p> <p>How does it work?: 01:01</p> <p>Pros and Cons: 02:17</p> <p>Website and Portfolio: 03:16</p> <p>When to use it?: 05:18</p> <p><br></p> <p>Links:</p> <p><strong>Website:</strong> https://www.magicformulainvesting.com/&nbsp;</p> <p><strong>Portfolio Tracker Sheet: </strong><a href="https://docs.google.com/spreadsheets/d/1Lu4JEYlbfI-4TnywfQYGVAimBEqMpCPZJZu0-AWF6Q8/edit#gid=726394198"><u>https://docs.google.com/spreadsheets/d/1Lu4JEYlbfI-4TnywfQYGVAimBEqMpCPZJZu0-AWF6Q8/edit#gid=726394198</u></a></p> <p><br></p> <p><u><strong>Description:</strong></u></p> <p>Magic formula investing refers to a rules-based, disciplined investment strategy that will teach you a relatively simple and easy-to-understand method for <strong>value investing</strong>.</p> <p>A backtest of market performance between 2003 and 2015 found that the magic formula strategy had annualized returns of 11.4%, compared with 8.7% from the S&amp;P500.</p> <p>Put simply, it works by ranking stocks based on their <strong>price and returns on capital</strong>.</p> <p>Developed by Joel Greenblatt—an investor, hedge fund manager, and business professor—the formula applies to large-cap stocks. He has provided a lot more detail in the book “The Little Book That Beats The Market”</p> <p><br></p> <p><strong>Useful links:</strong></p> <p>All Streaming Platforms for Cold Brew Money Podcast: <a href="https://coldbrew.money/links/"><u>https://coldbrew.money/links/</u></a></p> <p>About Cold Brew Money: <a href="https://coldbrew.money/about/"><u>https://coldbrew.money/about/</u></a></p> <p>All Cold Brew Money Episodes: <a href="https://coldbrew.money/episodes/"><u>https://coldbrew.money/episodes/</u></a></p> <p>Cold Brew Money Tools: <a href="https://coldbrew.money/tools/"><u>https://coldbrew.money/tools/</u></a></p> <p>Buy Us A Coffee: <a href="https://www.buymeacoffee.com/coldbrewmoney"><u>https://www.buymeacoffee.com/coldbrewmoney</u></a></p> <p><strong>Hosts:</st