What is Magic Formula Investing? Magic formula investing is a rules-based investing strategy that buys companies with a high earnings yield and return on capital employed. It was developed by professor and hedge fund manager, Joel Greenblatt, who outlined the investment process in his 2005 book: “The Little Book That Beats the Market”. He showed … Read more
What do Wall Street legends Martin Zweig, Peter Lynch, and William O’Neil have in common? It’s their belief that share prices are driven by the improvement, or momentum, of earnings. Read these articles for a deep-dive into a Martin Zweig stock screener strategy, and Peter Lynch stock screener strategy. Each have built enviable careers around … Read more
This article will shed light on the defining features of growth stocks, and how to encapsulate them in your growth stock screener criteria. I will then show you how to apply this criteria into one of my favourite stock screeners, ChartMill, so you can find growth stocks in no time. What Are Growth Stocks? Growth … Read more
Ever wondered what the best valuation metric to find value stocks is? Well, this post is the answer to your prayers. I’m about to show you why the free cash flow yield is the undisputed champion for this task, the theory behind it, and finally, how to implement a free cash flow yield stock screener … Read more
Background Martin Zweig was a highly respected investor in the 1970’s-90’s, with one of the most widely followed stock recommendation newsletters at the time: The Zweig Forecast. From 1980-95 this newsletter returned an average of 15.9% a year, during which time it was ranked number one on risk-adjusted returns by Hulbert Financial Digest – earning … Read more