Magic Formula Top 30
Joel Greenblatt's Magic Formula combines two rankings - ROIC (capital efficiency) and earnings yield (cheapness) - into a single composite score. The original Magic Formula sweet spot: stocks in the top quintile on BOTH measures simultaneously. Greenblatt's published backtest showed this combination outperformed the S&P 500 by 10-15% annualised across the 1988-2004 study window.
Leader
ASA Gold and Precious Metals Limited ASA
MF rank: 8
Composite computed at query time: rank descending on ROIC TTM and earnings yield separately, then sum the two ranks. Lowest sum = best Magic Formula score. Filters: market cap ≥ $500M, ROIC TTM > 0, earnings yield > 0, both fields non-null. Top 30 returned (the canonical Greenblatt cohort size).
Educational framework analysis only. Not investment advice, not a recommendation, not personalized to your situation. Always do your own research.
