Value Investing
The value investing strategy attempts to determine the intrinsic value of a company and is based on a fundamental analysis of the company’s performance.
The intrinsic value of a company commonly differs from the share price.
This is nice and logic but how can one find these companies? From your broker? Newsletters?
The best way is to find them yourself and to do your homework.
How To Become a value investor yourself ?
Peter Lynch said once : ‘I've found that when the market's going down and you buy funds wisely, at some point in the future you will be happy. You won't get there by reading 'Now is the time to buy.'
When stocks are down and depressed, you must do your homework carefully and keep an active value-investing view of the market.
But that is not easy if you do not have the tools. Therefore MFIE has developed an application that does 2/3 of your homework to find value stocks.
! Try the MFIE - Value Investing Stockscreener to find Value stocks ! |
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Service Overview
The Magic Formula stock strategy, invented by Joel Greenblatt in The Little Book That Beats the Market
, earned nearly 31% ANNUAL returns over a 17 year period.
The "Magic Investment Formula" represents a simple screening process for determining an investment strategy in stocks, namely "cheap and good companies" with a high earnings yield and a high return on invested capital (ROIC). With this formula and on average, you will be investing in good companies at a very reasonable price.You are buying good companies, on average, at cheap prices, on average.
Magic Formula Investing Europe uses MFI techniques to provide 3 different sets of screens. The screens are differentiated by the currency used in financial statement reporting: one screen for euros, one for British pounds, and another for US dollars. One nice thing about the US screen is that it includes foreign ADRs that convert their results into dollars for SEC filings. Also very useful is the extensive data provided for each stock that is screened. Unlike the official MFI screen, this one contains data like actual calculated earnings yield, return on capital, dividend yield, industry sector, 52 week price range, and more. Information like this makes it much quicker to dig up attractive investing opportunities.
