Joel Greenblatt's Top 'Magic Formula' Stocks

Joel Greenblatt, the founder of Gotham Asset Management, is widely known for his "magic formula" investment approach. This strategy searches for companies that offer a combination of a high return on invested capital and a high earnings yield. Like many other value investors, Greenblatt seeks stocks whose intrinsic value is substantially higher than the current price level.

Looking at the sector composition of Greenblatt's portfolio, the services and technology sectors are the most heavily weighted, composing 21.9% and 27.3% of his total holdings. To identify what companies Greenblatt currently views as "heavily undervalued," we must look at stocks that exhibited large swings in portfolio value between the first and second quarters of this year....743 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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