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Green blatt magic formula

Discussion in 'Fundamental Analysis' started by akuvijay, Jul 4, 2018.

  1. akuvijay

    akuvijay Active Member

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    Hello everyone I have short listed 10 stocks based on green blatt strategy

    Need your guidance on below shares if there are any shares with bad management or bad business


    Name
    Avanti Feeds
    G M Breweries
    Maithan Alloys
    Bajaj Auto
    Ultramarine Pig.
    Cambridge Tech.
    Hero Motocorp
    Accelya Kale
    NESCO
    PSP Projects

    Regards


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  2. k_singh

    k_singh Member

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    What is Green Blatt magic formula how it works on stocks?
    What parameter required to identify the stock for investment?

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  3. shabbir

    shabbir Administrator Staff Member

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    I also had no idea about it but watched some videos on youtube and then ordered this book https://amzn.to/2tTi7xc

    Looks quite promising as the formula takes into account the absolute and relative valuations for the past 2 decades and then decides on the ones that are in the lower valuations category.
     
  4. k_singh

    k_singh Member

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  5. nirajshah

    nirajshah Champion

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    I also ordered it. Looks interesting

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  6. mailtoswarup

    mailtoswarup Member

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  7. shabbir

    shabbir Administrator Staff Member

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    Can't say as of now because I haven't read it as yet. Will take longer time to reach me as it is international edition.
     
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  8. akuvijay

    akuvijay Active Member

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  9. akuvijay

    akuvijay Active Member

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    I read the book 2 years back and done paper trade for two years. He suggests unique technique which identifies undervalued with high return on in investment. After identifying the shares one has to invest in them for 6 months and reshuffle/repeat the process for six months


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  10. akuvijay

    akuvijay Active Member

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    Apart from his recommendations, I have used market smith and markets mojo ranking to further screen out bad shares


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  11. akuvijay

    akuvijay Active Member

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  12. akuvijay

    akuvijay Active Member

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    This is my third year and this time I have started investing with this formula currently I have invested in all above ten shares with 3500 in each


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  13. rcube1972

    rcube1972 Member

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    Stocks in your list are all undervalued?
    I am using the term undervalued in the sense it has been used by Graham and Buffett with respect to value investing. Has the author mentioned anywhere in the book what he means by "undervalue"? Did he mean intrinsic valuation or relative valuation?
     
  14. akuvijay

    akuvijay Active Member

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    Green blatt don’t tell about how to calculate the valuation but based on his formula there will be earnings yield which will take care of valuation


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  15. shabbir

    shabbir Administrator Staff Member

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    Ordered from that link and it took long to deliver.
     
  16. akuvijay

    akuvijay Active Member

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  17. deepmukherjee123

    deepmukherjee123 Member

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    I aku Vijay I have some doubt in understanding this formula and to apply the same. Can I call you ? Will u share your number pl
     
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  18. pvalaya

    pvalaya New Member

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    Sir, can you tell, which site have you used to obtain data and to list the companies..

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  19. shabbir

    shabbir Administrator Staff Member

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    I am not picking stock based on only this formula but it is an added measure to check when I am doing the stock picking.

    The first step is to know the right stocks and you can do that by reading my following articles

    https://shabbir.in/investment-checklist/
    and
    https://shabbir.in/fundamental-analysis/

    Once the stock qualifies the above checklist and analysis, I analyze the business on the following parameters

    https://shabbir.in/business-checklist/

    Then comes the understanding the technical analysis based on price action which gives us the right price.
     
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  20. pvalaya

    pvalaya New Member

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