Why I Don’t Use the “Magic Formula” to Pick Dividend Stocks & Beat the Market by 30%

In this video I tell you why I don’t use the Magic Formula to buy Dividend Stocks, even though it is a stock picking process developed by one of the most successful investors of all time that apparently achieved over 30% annualized returns.

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The Little Book that Beats the Market: https://amzn.to/3K4qmwP
The Little Book that Still Beats the Market: https://amzn.to/3m8BIYF
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0:00 Intro
1:40 Joel Greenblatt explains his Magic Formula
3:12 Why I made this video
4:19 Joel’s history
4:58 Joel’s “The Little Book that Beats the Market” book (affiliate link further below)
5:52 magicformulainvesting.com
6:13 Magic Formula annualized returns
7:28 Different ways to pick stocks
7:48 13f quarterly reports
9:11 Magic Formula elaborated
9:15 Market Cap elaboration
9:51 Seeking Alpha
10:22 JNJ share price trend
11:10 Magic Formula cont.
12:18 Enterprise Value
12:42 Magic Formula cont.
13:52 Magic Formula stock screener
15:56 Thoughts on my title
16:11 Another stock screener
16:22 Magic Formula context
16:30 Wikipedia (not Investopedia) info on Magic Formula performance
19:41 Why I don’t use the magic formula
21:10 Some things I like/dislike about the Magic Formula
22:00 Shoutouts/ending

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Investing Books to read (as an Amazon Associate I earn from qualifying purchases):
The Intelligent Investor ➜ https://amzn.to/2WPwgtj
One Up on Wall Street ➜ https://amzn.to/2YTDAXt
Rich Dad, Poor Dad ➜ https://amzn.to/2SUCwOZ
The Richest Man in Babylon ➜ https://amzn.to/2SUHStw
A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing ➜ https://amzn.to/2YUgjo4

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https://en.wikipedia.org/wiki/Magic_f....
CC By Investors Journal: Joel Greenblatt: Magic Formula Investing    • Joel Greenblatt: Magic Formula Invest...  

Disclaimer: I am not a financial adviser. These videos are for entertainment, inspiration, and educational purposes only. Investing of any kind involves risk. I am only sharing my opinion with no guarantee of gains or losses on investments. Please consult an appropriate adviser and do your own research before making any decisions on anything. I am not responsible or liable for any actions you take. The data shared may be inaccurate.

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