Our Greenblatt Magic Formula is dynamic now!

Olivier Dambrine 13 May 2016

We made another change to our Greenblatt Formula that brings it even close to the results listed on Magic formula investing. (link) In the past, we calculated the magic formula score over the entire set of 33.000 stocks. The reason for doing this was to make the screener quick and scalable. The downside of this approach was that it created gaps in the score, which was normal, but it looked odd certainly when you only selected a few countries.

Dynamic Magic Formula

It was also resulting in small discrepancies with the version populated on the official site, as the version linked to the little book (that still beats the market) only takes into account North American stocks.

By making some tweaks to the calculation engine, we enabled real-time magic formula calculation, i.e., considering the selections you made in the filter menu. This will ensure that even if you decide to filter out certain industries or select only specific countries, a dense and orderly ranking is shown. And best of all, you will see from the screenshot above that the North American list is now very close to the official list. This makes our screener the only magic formula screener that is both accurate and can be used globally and scan 68 stock markets around the globe!