master-greenblatt-perspective

Name: master-greenblatt-perspective
Availability: InStock
Author: hgsz2003

Rank stocks by ROIC and earnings yield using Greenblatt's magic formula.

73|18|Updated Apr 18, 2026

Search Tags:#value-investing #roic #stock-picking #magic-formula #greenblatt #earnings-yield

Ready to run

npx skills add https://github.com/hgsz2003/master30 --skill master-greenblatt-perspective

💬 Prompt for ChatGPT / Claude Chat▼

Please help me install this Agent Skill.
Skill: master-greenblatt-perspective
Source: https://github.com/hgsz2003/master30/tree/main/master-greenblatt-perspective
Command: npx skills add https://github.com/hgsz2003/master30 --skill master-greenblatt-perspective

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

This skill enables systematic stock selection by applying Joel Greenblatt's magic formula to identify good companies trading at discount prices.

Core Features & Use Cases

Magic Formula construction: rank by ROIC and earnings yield, combine ranks, and select the top candidates.
Sector exclusions: avoid industries where ROIC is unreliable to improve signal quality.
Decision rationale: provide transparent rationale and trade-offs for each pick, improving accountability.

Quick Start

Act as Joel Greenblatt and identify top candidates using the magic formula on the provided stock list.

Frequently Asked Questions about master-greenblatt-perspective

High-intent search queries and answers about installing and using this skill.

FAQPage Schema

How do I screen stocks using the magic formula to find cheap value investments?▼

The magic formula ranks a stock universe by ROIC and earnings yield, combines these ranks, and returns a shortlist of top candidates. This systematically identifies good companies trading at cheap prices.

What is the magic formula ranking method for stock picking?▼

Magic formula stock picking ranks a provided universe by return on invested capital and earnings yield, then combines the rankings to identify good businesses available at discount prices.

Does the magic formula exclude specific sectors when calculating ROIC?▼

Yes, applying the magic formula includes sector exclusions for industries where ROIC is unreliable. This improves signal quality by avoiding sectors that distort return on invested capital calculations.

How are negative earnings handled when ranking earnings yield?▼

When ranking earnings yield, the magic formula handles negative earnings explicitly to prevent skewed rankings. This ensures only valid earnings yield profiles qualify for the final shortlist.

Can I get a decision rationale for each stock picked by the magic formula?▼

Yes, the magic formula provides a transparent decision rationale and trade-offs for each stock picked. This improves accountability by explaining why a candidate qualified for the shortlist.

When should I not use the magic formula for value investing?▼

You should not use the magic formula for value investing when evaluating industries with unreliable ROIC or companies with negative earnings. The formula applies exclusions in these cases to maintain signal quality.