Magic formula
Stage 1. Set the amount to invest for one year.
Step 2. Get a list of companies ranked by magic formula.
Step 3. Purchase stocks of five to seven top-ranking companies with 20-33% of the funds set-up.
Step 4. Repeat steps 2 and 3 every 2 to 3 months until the set funds are exhausted.
(9 to 10 months later, a magical official portfolio of 20 to 30 companies will be completed)
Step 5. Each individual stock is held for a year and then sold.
Step 6. Purchase the same number of new companies again with the funds sold.
Step 7. Repeat this process for many years.
A reverse investment
Graham's formula
All items except technology related companies
$ 50 million in assets, or $ 50 million in revenues
If the flow rate is more than 200% or less than 200%, the utility or carrier current liabilities shall not exceed net operating assets or working capital
Long-term earnings per share (EPS) growth is over 30% over the past decade, and average EPS over the past five years should not be negative
PER is below 15
PBR × PER should not exceed 22
Total debt ratio should not exceed 100%
Dividends will continue to be paid
Power analysis
Stage 1. Set the amount to invest for one year.
Step 2. Get a list of companies ranked by magic formula.
Step 3. Purchase stocks of five to seven top-ranking companies with 20-33% of the funds set-up.
Step 4. Repeat steps 2 and 3 every 2 to 3 months until the set funds are exhausted.
(9 to 10 months later, a magical official portfolio of 20 to 30 companies will be completed)
Step 5. Each individual stock is held for a year and then sold.
Step 6. Purchase the same number of new companies again with the funds sold.
Step 7. Repeat this process for many years.
A reverse investment
Graham's formula
All items except technology related companies
$ 50 million in assets, or $ 50 million in revenues
If the flow rate is more than 200% or less than 200%, the utility or carrier current liabilities shall not exceed net operating assets or working capital
Long-term earnings per share (EPS) growth is over 30% over the past decade, and average EPS over the past five years should not be negative
PER is below 15
PBR × PER should not exceed 22
Total debt ratio should not exceed 100%
Dividends will continue to be paid
Power analysis
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