Value Investing on the Nordic Stock Market - Does the Magic Formula constitute a viable strategy for outperforming the market?
In this thesis we investigate if following the magic formula can yield superior investment returns in relation to the risk taken. The magic formula is a term coined by Joel Greenblatt, describing a systematic approach to successful stock investing. The strategy identifies high value companies based on return on capital that are selling at a discount to their intrinsic value based on the company’s
