These are the general rules that I use for screening potential investments:
- Listed on the SGX (Primary Listing)
- Small Caps
- Exclude Financials and Utilities sectors
- Rank companies based on Earnings Yield*
- Rank companies based on Return on Invested Capital**
- Invest in companies with the smallest combined values (aka good companies at cheap prices)
*EBIT/Enterprise Value
**EBIT/(Net working capital + Net fixed assets)
The screener is based off Joel Greenblatt's Magic Formula Investing after reading his book "The Little Book That Beats the Market". I added some personal modifications and have been using it to screen for stocks beginning of 2018.
The screener is based off Joel Greenblatt's Magic Formula Investing after reading his book "The Little Book That Beats the Market". I added some personal modifications and have been using it to screen for stocks beginning of 2018.
Great performance. You might want to check out the book Quantitative Value as well. Do you mind sharing which website you are using to screen for EBIT/ EV? I checked stock.cafe and they don't have this. Meetinvest allows you to use the magic formula but no way to see how EBIT/ EV is calculated nor separate it from ROIC.
ReplyDeleteUnfortunately, I can't share my sources. However, I have started sharing the list of stocks that meet my criteria.
DeleteIf i see that there is an interest, I will continue to post them weekly.
Cheers.