MagicDiligence

Steve Alexander, Editor of MagicDiligence

After reading Joel Greenblatt's The Little Book that Beats the Market in 2007, I was impressed with how effectively the strategy he devised, Magic Formula® Investing (MFI), so succinctly pulled together many fundamental tenants of value based investing into a very simple method that anyone can follow.

I've been investing in individual stocks for close to 20 years. It is a passion that has led me through volumes of investing books, business tomes, and accounting manuals. My influence has always been of the value-based variety: Benjamin Graham, Warren Buffett, Ken Fisher, and Pat Dorsey are just a few investors whose philosophies have shaped my own. After reading his book, Joel Greenblatt was added to that list.

After looking more into the stocks screened by the strategy, I quickly realized that many of the stocks were outstanding investment opportunities - but also littered with highly risky companies, many with large debt burdens, declining industries, fad products, accounting issues, and so forth.

It occurred to me, as well as many other investors, that MFI would make a great basis for stock research - a way to screen and generate a "universe" of attractive stock picks. From this universe, I could apply my many years of stock analysis to further pare down this list into only the very best investment opportunities. I could throw out the bad or mediocre stocks and buy just the ones with good growth potential, strong competitive advantages, excellent management, and rock solid financial health. And since this concept had not yet been applied anywhere else, I decided to start MagicDiligence to share my research and opinions with the rest of the MFI and investment community at large.

After many years of picking from strictly the Magic Formula lists, in 2016 MagicDiligence was revamped to instead apply Greenblatt's ingenious score-and-rank methodology to stocks in a variety of ways. I wanted to focus more on developing our tool set and asking the question: how else could we apply the score-and-rank methodology to a universe of stocks to find the criteria we are looking for? Could we use it to find attractive growth oriented stocks instead of value stocks? Could we create a growth-at-a-reasonable price screen? Could we use statistics to further pare down the traditional MFI strategy?

These are all questions I'm looking forward to answering here at MagicDiligence.

But most importantly, the site is dedicated to providing USEFUL, SIMPLE, and EFFECTIVE stock screening tools at a price any investor can afford. There are dozens of free screeners out there - we focus on novel statistics and methods that provide immense value with very little effort from users. My vision is to make finding numerous great investment ideas cheap and easy.

I hope you enjoy MagicDiligence and would love to hear your feedback. Feel free to contact me directly anytime through email at steve@magicdiligence.com. All the best!

Best,
Steve Alexander
Editor of MagicDiligence.com

Joel Greenblatt and MagicFormulaInvesting.com are not associated in any way with this website. Neither Mr. Greenblatt or MagicFormulaInvesting.com endorse this website's investment opinions, strategy, or products. Investment recommendations on this website are not chosen by Mr. Greenblatt, nor are they based on Mr. Greenblatt's proprietary investment model, and are not chosen by MagicFormulaInvesting.com. Magic Formula® is a registered trademark of MagicFormulaInvesting.com, which has no connection to this website. The information on this website is for informational purposes only and solely represents the views and opinions of the author. No warranty is provided or implied as to the accuracy, completeness, or timeliness of this information. This information may not be construed as investment advice of any kind, nor can it be relied upon as the basis for stock trades. DON'T RELY SOLELY ON THIS WEBSITE'S INFORMATION OR STATISTICS! Please do your own research before buying. Alexander Online Properties LLC, the proprietor of this website, is not responsible in any way for losses or damages resulting from the use of this information. Alexander Online Properties LLC is not a registered investment advisor. All logos are trademarked properties of their respective companies.

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