High earnings yield + high ROIC: quality companies at value prices
Greenblatt Magic Formula
| Symbol | Action | Vol | Stop Loss | Take Profit | Size | Links |
|---|---|---|---|---|---|---|
| COST | BUY | 21% | 10.4% below entry | 7.3% above entry | 14.8% | TVYH |
| GOOGL | BUY | 30% | 15.2% below entry | 10.6% above entry | 10.2% | TVYH |
| AAPL | BUY | 29% | 14.5% below entry | 10.2% above entry | 10.7% | TVYH |
| QCOM | BUY | 38% | 19.5% below entry | 13.6% above entry | 7.9% | TVYH |
| MSFT | BUY | 24% | 12.3% below entry | 8.6% above entry | 12.5% | TVYH |
| UNH | BUY | 43% | 21.9% below entry | 15.3% above entry | 7.1% | TVYH |
| TXN | BUY | 37% | 18.6% below entry | 13.0% above entry | 8.3% | TVYH |
| V | BUY | 22% | 11.0% below entry | 7.7% above entry | 14.1% | TVYH |
| MCO | BUY | 27% | 13.5% below entry | 9.4% above entry | 11.5% | TVYH |
| JNJ | BUY | 18% | 9.0% below entry | 6.3% above entry | 17.2% | TVYH |
| SPGI | BUY | 25% | 12.6% below entry | 8.8% above entry | 12.3% | TVYH |
| MA | BUY | 22% | 10.9% below entry | 7.6% above entry | 14.2% | TVYH |
| BRK-B | BUY | 18% | 8.9% below entry | 6.3% above entry | 17.3% | TVYH |
| HD | BUY | 23% | 11.7% below entry | 8.2% above entry | 13.3% | TVYH |
This strategy is suitable for passive investing. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -21% drawdown to return 353% long-term. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.