An Excellent Resource for Any Investor

Magic Formula investing is based on a simple yet powerful way of searching for undervalued stocks. According to Joel Greenblatt’s The Little Book That Beats The Market, portfolios of stocks selected quantitatively based on MFI criteria have handily outperformed the S&P 500 over the past couple of decades.

Magic Formula Performance vs. S&P 500, 1988-2004


Magic Formula Investor
Researches and recommends individual stocks on the screen, allowing you to make smart picks for your Magic Formula portfolio. Also provides frequent Quick Take reviews of MFI stocks that may interest you.

Small Cap Investor
Detailed research on small cap stocks is hard to find. Large research services don't bother to cover small caps because of a relative lack of interest from their institutional clients. The Magic Formula screen is littered with excellent and cheap small cap stocks, but many of these are quite risky. By using the service's research and opinions, the small cap investor can quickly produce a list of attractive opportunities.

Value Investor
The Magic Formula screen itself is in essence a value based screen. Any stocks researched are by definition cheap in a statistical sense. Adherents to the Warren Buffett school of value investing will appreciate MagicDiligence's competitive position, risks, and management research as they search for those wide moat stocks.

Low Maintenance Investor
This service flags the exceptional Magic Formula stocks as Top Buys - effectively a recommendation of that stock. By following these newsletter style picks, those who want to buy great businesses at cheap prices can simply follow the recommendations and duplicate the service's returns.