What works on Wall Street, Magic Formula

[Fran8]

Hi

I have reed the Little Book that Beats the Market by Joel Greenblatt, which give us a magic formula to beat the market.

I also have reed the book of James O'Shaughnessy that also gives a value and a growth formula that also beats the market.

I would like to know if anyone have use any of the formulas and if they have work.

Thanks

 

[Trader333]

What are the formulas ?


Paul

 

[foredog]

3 toads, wing of bat, a sprinkle of pixie dust, $5bn and the 20EMA

 

[rols]

Hi


I also have reed the book of James O'Shaughnessy that also gives a value and a growth formula that also beats the market.

Is he the Irishman who goes long and short at the same time.....?

.....to be sure, to be sure.

 

[Charlton]

What are the formulas ?


Paul

Paul

This will really blow your mind - the Amazon book review site reveals it:

Amazon.com: The Little Book That Beats the Market (Little Books. Big Profits): Joel Greenblatt: Books

The rationale is straightforward: buy shares in good businesses, measured by returns on capital, only when they're available at bargain prices, defined as a high earnings yield.

Well it worked for Warren Buffet

Charlton

 

[Fran8]

Charlton that is the book but have you try the formula used on it. The book is very simple and very straight forward but I would like to know if anyone have try it.

 

[Fran8]

Rols I do not know if he is Irish he looks at forty past data and he uses to predict

 

[anley]

You can't know the 'secrets' because they're what 'the pros don't want you to know'

 

[Fran8]

Anley I agree with you to certain extent. I have read many books of top investors and they dont give you a completely strategy. What I have found is that each investor will give you a small tip or a direction but not the full strategy

 

[Straddle8]

Both books are interesting to read, especially The Little Book That Beats The Market. If I could go back in time now I probably would have invested my money in Greenblatt his funds: https://www.formulainvesting.com/actualperformance_MFT.htm

 

[Fran8]

It looks very good have you got any money on formula investing?

 

[luckyd1976]

I also have reed the book of James O'Shaughnessy that also gives a value and a growth formula that also beats the market.

I would like to know if anyone have use any of the formulas and if they have work.

Thanks

The WWoWS book (LongTerm Trading) isn't collecting dust on my shelf but I dont currently use any one Idea. I do know one trader that would use the #1 strategy on pg 345 successfully. For me its just good ol number crunching. Love it. His new edition is coming out Dec10 (already on preOrder)

 

[rathcoole_exile]

which give us a magic formula to beat the market.

what, follow MEDBS ???????
:clap::clap::clap::clap::clap::clap::clap::clap:

 

[Straddle8]

The WWoWS book (LongTerm Trading) isn't collecting dust on my shelf but I dont currently use any one Idea. I do know one trader that would use the #1 strategy on pg 345 successfully. For me its just good ol number crunching. Love it. His new edition is coming out Dec10 (already on preOrder)

?

 

[Straddle8]

It looks very good have you got any money on formula investing?

No, currently not. I've spent months backtesting stocks/etfs/futures and following some CANSLIM guidelines, but unfortunately I realized I'm not making money or following a strategy in a consistent way. Right now I'm doing some research on Greenblatt his formula and his funds. The results for his formula look very good, even after he released his book.

 

[Straddle8]

what, follow MEDBS ???????
:clap::clap::clap::clap::clap::clap::clap::clap:

I strongly advise you to give the book a try

 

[rathcoole_exile]

aye right enough.
shall i sacrifice one of my weans too ? How about some voodoo or black magic ?
dancing naked in the jungle at night with 7 vestal virgins ?

you mug

 

[luckyd1976]

?

Market Caps 25mil-250mil (I love this space too)
PSR < 1
Sort by 1 yr RS
Top companies (25-50 portfilio)

Price to Sales has been proven throguh the years as a good value indicator (Ken Fisher's #1 tool) Combine that with the Relative Strength for growth.
The Smaller lesser known 25mil-250mil arena has some really good track records (Per the Book Pg 345 "What Works on Wall Street"

 

[Straddle8]

Market Caps 25mil-250mil (I love this space too)
PSR < 1
Sort by 1 yr RS
Top companies (25-50 portfilio)

Price to Sales has been proven throguh the years as a good value indicator (Ken Fisher's #1 tool) Combine that with the Relative Strength for growth.
The Smaller lesser known 25mil-250mil arena has some really good track records (Per the Book Pg 345 "What Works on Wall Street"

To be honest, if I had to pick one of the strategies in O'Shaughnessy his book it would also be that one. From an intuitive point of view, you're buying low priced stocks that show relative strength. Have you also tried to backtest any of these strategies yourself?

 

[luckyd1976]

To be honest, if I had to pick one of the strategies in O'Shaughnessy his book it would also be that one. From an intuitive point of view, you're buying low priced stocks that show relative strength. Have you also tried to backtest any of these strategies yourself?

Nope I dont trade any in the book. But find it very interesting.

The whole book is his Backtesting, lol New Book Dec'10