Magic Formula Stocks – Nifty Midcap 100 Index
Magic formula investing is a stock selection method devised by Joel Greenblatt. It uses the principles of value investing to select stocks. Before getting into the ‘Magic Stocks’ part, allow me to digress, just a little bit.
This blog – Sentiments & Bubbles (S&B) has largely been devoid of stock recommendations. I have had many subscribers complain that there is no ‘actionable content’ on S&B. The primary reason for shying away from giving recommendations is that there are already too many stock recommendations and tips floating around. I don’t want to add to the noise, rumour mongering and confusion. In fact, I have deliberately tried to distance S&B from the noise. The image below, one of my favourites, says it better than words.
What is Magic Formula Investing?
Moving on, I have tried to address the ‘actionable’ part of S&B with this post. This is what I have done:
I ran the ‘Magic’ formula on the Nifty Midcap 100 Index. You can click on the link at the end of this post and download the list of ‘Magic stocks’. Before you do that, I wish to draw your attention to the following:
- The concept of ‘Magic Formula for Stock Selection’ has been expounded by Joel Greenblatt in his book titled The Little Book That Still Beats the Market.
- I had written a post titled ‘The Magic Formula for Stock Selection’, sometime in 2014. For those of you who may want to invest in any of the ‘Magic Stocks’, I would classify the above-referred post as ‘essential reading’. Click here to read.
- In the file attached, you will find NSE symbols, closing prices as on January 08 2015, the 52 week low and the 52-week high for the 100 stocks that comprise the Nifty Midcap 100 Index.
- The top thirty stocks are the ‘Magic’ stocks. These have been highlighted. Click Magic Formula Stocks – Nifty Midcap 100 Index to download the file. All the best and happy investing!
Hm…you are making your blog more interesting. Keep it up!
Thanks Rajas for your kind words and encouragement