>Magic Formula Must Readings.
A good post. Shows good thinking.
http://3gv.blogspot.com/2006/01/magic-formula-part-1.html
How to Make magic formula even more magical.. !!
http://3gv.blogspot.com/2006/01/most-magical-formula-of-all-bull.html
The original site of the founder of MagicFormula
http://magicformulainvesting.com/
Some pdfs which helps get the thinking straight.
http://www0.gsb.columbia.edu/accounting/seminars/PIOTROSKI.pdf
http://www.defaultrisk.com/pp_score_14.htm
https://www.bernstein.com/CmsObjectPC/pdfs/R&S_0408_BananceSheetAccruals_JPM.pdfusing
http://www.leggmason.com/funds/knowledge/mauboussin/MMonValuation_LMWWversion.pdf
Got more insight material in this art of magic.
Leave ur comments and views.
http://3gv.blogspot.com/2006/01/magic-formula-part-1.html
How to Make magic formula even more magical.. !!
http://3gv.blogspot.com/2006/01/most-magical-formula-of-all-bull.html
The original site of the founder of MagicFormula
http://magicformulainvesting.com/
Some pdfs which helps get the thinking straight.
http://www0.gsb.columbia.edu/accounting/seminars/PIOTROSKI.pdf
http://www.defaultrisk.com/pp_score_14.htm
https://www.bernstein.com/CmsObjectPC/pdfs/R&S_0408_BananceSheetAccruals_JPM.pdfusing
http://www.leggmason.com/funds/knowledge/mauboussin/MMonValuation_LMWWversion.pdf
Got more insight material in this art of magic.
Leave ur comments and views.
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Also read > Previous Investment Articles
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posted by Rajeev at 1/28/2006
3 Comments:
Hi Rajeev,
If a company has very high ROC and its growing well and even then it has a low PE (or high earning yield), doesn't it mean that its present is good but future prospects are not that bright?
Your idea right partially...
even then Thats where u invest ur money on when u get convinced of the company..
This is where u have to say "i know the mkt is mis-pricing this stock".!
You have to stand apart and take a call wether the company would continue to do well.
You have to cross swords with the sellers..
NOTE: You try to find things which others have not seen... Thus low PE.
I read the book, and thoroughly agree with the concept. The problem I'm facing is where and how to get the data for such an analysis in the Indian context!
Any pointers? Thanks a ton.
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