The Magic Multibagger-Part 2
Last year on the 7th of January, 2017 we Shared the Magic Multibagger Formula and the performance has been amazing. These are Top 10 Stocks according to a strategy which is endorsed by Warren Buffet, written in “the little book that beats the Market” by Joel Greenblatt. Joel Greenblatt runs a hedge fund named Gotham Capital and has compounded capital at 40% for 20 years from 1985 to 2006.
This is the performance of the Companies according to the Magic Formula (2017) last year. Click Here to Read the 2017 Magic Multibagger Blog
In the Book, Joel Greenblatt gives out his Magic Formula. The Result’s of the Magic Formula in the US Markets have been Amazing and has delivered 30.8% between 1988 and 2004 with delivering negative returns only once.
SO WHAT EXACTLY IS THE MAGIC FORMULA?
The Magic Formula is Easy – Buy Good Companies for Cheap Valuation.
We Ranked all companies listed in Indian Stock market above the marketcap of 500 crores According to 2 main Factor’s of the Magic Formula
1)Good Companies that have High Return on Capital Employed (ROCE)
2)Cheap Companies that trade at a Low Enterprise Value to EBITDA Ratio (EV/EBITDA).
** Please note we have Excluded Holding Companies, Utilities and Financials.
Here is the list of top 10 stocks according to the Magic Formula for 2018.
Not all of these will be Multibagger, but these are good companies at below reasonable valuation. I haven’t Back tested this strategy in the Indian Stock Market, but in the US market this strategy has worked really well.
This is definitely not a Stock Recommendation but this strategy has worked really well and we havnt researched these companies. We will Review this strategy at the end of 2018. Incase you are looking for the full Excel, feel Free to Mail us at info@stallionasset.com and we will provide it to you.
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