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BHP Billiton passes 4 / 4 of the Greenblatt's Magic Formula Strategy.

History
The Magic Formula is a value investing strategy invented by the hedge fund manager Joel Greenblatt in the bestselling and highly recommended Little Book that Beats the Market. It focuses on finding quality value stocks using a blended ranking system (the Magic Formula rank) composed from two fundamental ratios: Return on Capital (which Greenblatt argues is the best determinant of whether a business is a good one) and Earnings Yield (his favoured measure for cheapness). He summarised his philosophy with the maxim "buying cheap stocks at bargain prices is the secret to making lots of money". In the fourth edition of his book Greenblatt claimed the top scoring portfolio of 30 stocks appreciated by 30.8% each year over the previous 17 years, though he stressed that the strategy could underperform during periods of up to two years. Having now sold hundreds of thousands of copies, the "Magic Formula" is credited for reinvigorating the practice of value investing. more »

PASS

Mkt Cap £m > 30

PASS

Magic Formula Rank > 0

PASS

Rank ( Earnings Yield % ) < 99%

PASS

Rank ( ROC % Greenblatt ) < 99%

FAIL

Qualifies in the top 30 stocks sorted by
Magic Formula Rank % descending

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