One of the indispensable sources of actionable investment ideas for value investors is The Manual of Ideas which has been published as a monthly periodical for several years. Recently, the Managing Editor of the Manual of Ideas released a book outlining his idea generation process which we review in this article.
One of the most compelling investing systems developed in recent years is Joel Greenblatt’s ‘Magic Formula’ approach which is documented on the magicformulainvesting.com website as well as Mr. Greenblatt’s The Little Book That Beats the Market. The formula ranks stocks based on two very simple and easily calculated figures: earnings yield and return on capital. Read this article to learn more about how The Manual of Ideas adds qualitative insight into magic formula stocks.
Downside Protection Report has provided actionable information that I have used on several occasions over the past six months. One example involves a developer and operator of commercial real estate that was under pressure due to well publicized problems at a subsidiary that obscured the intrinsic value of the core business. Another example identified a low cost producer of natural gas trading at a significant discount to intrinsic value with proven reserves that exceeded the company’s market capitalization even at depressed gas prices. Read this article for more details.
Joel Greenblatt, founder of Gotham Capital, shared his thoughts on a number of investing topics in a rare interview on CNBC this morning. The focus of much of the discussion was related to Mr. Greenblatt’s “magic formula” strategy that he outlined in The Little Book That Beats the Market. Read this article for more information and to view the video.