Quality value
Good businesses at low prices, in the spirit of the Magic Formula.
How it works
Every month, keep liquid companies with a return on equity of at least 15% and net debt under two times EBITDA, and buy the ten with the lowest EV/EBITDA.
The idea
Joel Greenblatt's Magic Formula buys high-return companies at low valuations. Requiring quality filters out many of the value traps that pure low-P/E strategies end up in.
Backtests are simulations on historical data, not investment advice. Past results don't guarantee future returns.