Magic formula investing is an investment technique outlined by Joel Greenblatt that uses the principles of value investing.
In 2005, Joel Greenblatt published the book The Little Book That Beats the Market , in which he explains how investors can systematically apply a formula that seeks out good businesses when they are available at bargain prices.

Greenblatt suggests purchasing 30 “good companies”: cheap stocks with a high earnings yield and a high return on capital. He touts the success of his magic formula in his book ‘The Little Book that Beats the Market’ citing that it does, in fact, beat the S&P 500 96% of the time, and has averaged a 17-year annual return of 30.8%.

Our unique Magic Formula screener breaks the formula's combined Value+Quality rank into its Value & Quality components. Investors can now know exactly how cheap and high-quality a stock is, compared to other MF stocks.  

A stock portfolio based on Ben Graham’s Stock Selection Criteria for the Defensive Investor is a robust and straightforward method to beat the market. We present here a custom screener, with detailed instructions, allowing investors of any expertise level to build a low-volatility tax-efficient market-beating portfolio. The strategy selects 15 stocks listed in the  S&P 500 and holds them for one year or more. Once a year, investors examine the portfolio and are instructed on replacing between two and three stocks. Over a recent period of 19 years, such strategy had amassed 10% a year (incl. dividends), vs. 5.59% for the S&P 500. It has done so with lower volatility and a lower maximum drawdown.

Quantitative Value is an investing strategy which selects for investment the highest-quality cheapest stocks using state-of-the-art computer algorithm. Our implementation of Quantitative Value has generated returns of about %19 per year* on average, with relatively low volatility, and low asset turnover. 

Value investing in general, and Quantitative Value in particular, has been proven to beat the market handily in the long term by both practitioners’ experience and academic research. 

While the Magic Formula  uses a composite rank which selects stocks based on the average of their quality and cheapness, Quantitative Value first creates a bucket of cheap stocks, and then selects from it the highest quality stocks. The strategy has been shown to beat both the market and the Magic Formula by a wide margin.

Deep Value stocks are the absolute cheapest stocks, regardless of their quality. Companies get so cheap when they have problems. Such problems could be financial losses, industry and regulatory risks, failing management and lousy products. As most investors will avoid failing companies at any price, stocks of failing companies get cheap relative to their intrinsic value, very cheap. Deep Value investors realize that even companies with problems have some value in them. Sometime it is their assets, other times it is their know how. When a company is failing, there are huge forces pushing it to improve and return to normality. Most companies do return back to the average, and their stock price jump as a result. Investing in a diversified list of Deep Value stocks thus beats the market.

Our Deep Value (EV/EBIT) screener selects stocks with the lowest EV/EBIT. The investor can filter stocks based on market cap, beta, and volatility per his or her temperament and preferences. Our simulations show that Deep Value strategies returned up to 17% per year, on average, during the last 19 years.

Deep Value stocks are the absolute cheapest stocks,

The screener differs from the Deep Value (EV/EBIT) screener in the way it ranks and sorts stocks. The Value Composite 2 (VC2) ranking system was inspired by Jim O'Shaunessy's book "What Works on Wall Street". In the book he proposed a composite metric of 6 valuation multiples, plus the shareholder's yield. Our implementation includes: Price/Book, Price/Earnings, EV/Sales, EV/EBITDA, Price/Free Cashflow and Shareholders Yield. 

 Our Deep Value (EV/EBIT) screener selects stocks with the lowest EV/EBIT. The investor can filter stocks based on market cap, beta, and volatility per his or her temperament and preferences. Our simulations show that Deep Value strategies returned up to 17% per year, on average, during the last 19 years.

Quantitative Momentum is an investment strategy which selects for investment the stocks whose price appreciated the most during a period (usually the recent year, ignoring the most recent month). Momentum is considered a primary stock factor (a.k.a anomaly, or smart-beta factor) affecting stock returns. Academic research and practitioners’ experience show that Momentum has been outperforming the stock indices all over the world since 1927.

Our implementation returned an astounding 18.16% average annual return vs. the S&P 500 returns of 5.42% during an 18 years period, with a Sharpe ratio of 1.28, and lower volatility and drawdown than the market. 

An investor in net-net stocks examines the balance sheet to ascertain a conservative value of its asset value at liquidation, net of all liabilities. If a stock is selling at market capitalization significantly lower (say 30% lower) than a conservative evaluation of the value of assets in liquidation, net of all liabilities, than a purchase is considered. In such cases, both liquidation and improvement of business conditions may drive up the stock price. Nevertheless, profiting from such situations is not guaranteed, as the company losses may accrue and reduce liquidation value below the market value of its stocks.
We believe we have devised the most sophisticated screeners available free today on the web. The screeners contain:

• The fs_score quality measure, as defined by Carlisle and Grey in “Quantitative Value.”
• NCAV (or Adjusted Net ASsets) % of Market Value, as a measure of cheapness. The higher the figure, the lower the valuation.
• NCAV (or Adjusted Net Assets) value % year-over-year, to determine the rate of asset burn.