Magic Formula Portfolio

Last updated 25/03/2025

In 2005, Joel Greenblatt published The Little Book That Beats the Market – a New York Times bestseller that explains how investors can beat benchmark indices by systematically applying a “Magic Formula” that identifies high quality businesses available at bargain prices. More details how the formula works here.

In November 2021, I decided to put the so-called Magic Formula to the test and embark on a journey of at least 5 years to see if the formula works today, almost twenty years after the book was published.

This page provides transparent access into my personal Magic Formula portfolio. Track all my activity since inception, including asset allocation, transaction history and performance insights.

I hope you find it informative!

Performance

Below results since inception vs. SPY:

2021: -0.50% vs. 0.05% (-0.55%)

2022: -15.03% vs. -13.16% (-1.87%)

2023: 18.17% vs. 22.49% (-4.32%)

2024: 11.15% vs. 33.03% (-21.88%)

YTD: -1.13% vs. -5.33% (+4.20%)

Since inception: 7.02% vs. 8.72% (-1.70%)