Posted by johnny cash > 2014-05-07 21:48 | Report Abuse

thanks for the info, it s very helpfull

Posted by Ntpboon > 2014-05-08 11:17 | Report Abuse

谢谢大师的分享！

Posted by mflk331 > 2014-05-08 14:16 | Report Abuse

Very good article, can you share with us how you compute your data ?

Posted by kcchongnz > 2014-05-08 18:37 | Report Abuse

Posted by mflk331 > May 8, 2014 02:16 PM | Report Abuse

Very good article, can you share with us how you compute your data ?


I have done this for about two years already in i3investor.

I have started an online fee-based investment course with this theme of value investing which includes this Magic Formula Investing.

If you are interested, you can join us.

Posted by mflk331 > 2014-05-08 22:38 | Report Abuse

How to join ?

Posted by icelc > 2014-05-08 23:20 | Report Abuse

Hi kcchongnz, I've been following your posting about 6 months and really appreciate your elaborate explanation on FA. I'm interested to join your course but do you accept someone who is a beginner in investing and a slow learner?

I believe your course have started, am I able still able to join or I there will be another round?

Posted by kcchongnz > 2014-05-09 05:38 | Report Abuse

My email address is ckc13invest@gmail.com

Posted by AyamTua > 2014-05-09 07:38 | Report Abuse

a good early morning read kokokokokkkkk

Posted by chunghiung > 2014-05-11 22:44 | Report Abuse

Hi kcchongnz, please do some research on Malaysia Glove Companies. TQ

Posted by kcchongnz > 2014-05-12 18:29 | Report Abuse

Posted by chunghiung > May 11, 2014 10:44 PM | Report Abuse
Hi kcchongnz, please do some research on Malaysia Glove Companies. TQ

I believe this industry is highly researched by investment bankers and analysts. I am sure you can find many reports on this. They have all the information and they are the experts.

Posted by stockoperator > 2014-05-13 14:58 | Report Abuse

Positive or negative changes under the individual variable items of the formula carries equal weight if not more important than the formula itself.

Posted by stockoperator > 2014-05-13 15:07 | Report Abuse

Relatively High Payable or Receivable to Cash/Profit should be noted as well.

Posted by kakashit > 2014-09-06 09:02 | Report Abuse

what happen to year 2008 where Joel's fund shrink into Minion and underperform S&P a lot?

Posted by Ivan Lim > 2014-11-24 18:17 | Report Abuse

hi Mr kcchongz.i appreciate your unselfishness to share your investment theory.
Recently i had confuse..
i know that the net working capital in magic formula that you use is receivable +inventories -payable.however question is
1)if in the properties company ,the development properties in progress is included?or else unbilled sales is included?
2)FOR PAYABLE-do you count it total liabilities or only account payable ?when i study the joel greenbalt book.it said excluded the interest bearing loan,whic mean exclued all the loan that have interest bearing.is it the short term loan and long term loan not included ?

appreciate your kindness reply

Posted by kcchongnz > 2014-11-24 19:09 | Report Abuse

Posted by Ivan Lim > Nov 24, 2014 06:17 PM | Report Abuse
hi Mr kcchongz.i appreciate your unselfishness to share your investment theory.
Recently i had confuse..
i know that the net working capital in magic formula that you use is receivable +inventories -payable.however question is
1)if in the properties company ,the development properties in progress is included?or else unbilled sales is included?
2)FOR PAYABLE-do you count it total liabilities or only account payable ?when i study the joel greenbalt book.it said excluded the interest bearing loan,whic mean exclued all the loan that have interest bearing.is it the short term loan and long term loan not included ?
appreciate your kindness reply


Buying great companies cheap. How can this not worked, in long term at least? Good to revive something good, isn't it?

Ivan, finance and investing is art, and I made a lot of personal judgment which are controversial. There is nothing right or wrong.

These are my judgemnt on your questions.

1) yes and yes
2)I follow Joel Greenblatt

Posted by LangeSohneGlashutte > 2015-07-13 17:23 | Report Abuse

Hi KC,
May I know what software did you use to screen for the Magic Formula?

Thank you.

Posted by kcchongnz > 2015-07-13 18:10 | Report Abuse

Posted by LangeSohneGlashutte > Jul 13, 2015 05:23 PM | Report Abuse

Hi KC,
May I know what software did you use to screen for the Magic Formula?

Thank you.


The magic formula metrics of ROIC and earnings yield, Ebit/EV are not commonly available from any screen, I think. May be from overseas paid site like gurufocus. I do them "by hand".

Posted by Johnmajor > 2016-12-22 15:42 | Report Abuse

Hi KC Chong, I am not a finance nor accounting people but I am very keen to learn about applying Magic Formula to identify value stock that worth to take the risk to invest. I wonder whether you could provide me a simple example using actual Bursa counter to apply the Magic Formula. This would be a great help for me. Thanks!