About the platform
About
Fórmula Joel is a free educational tool to study and backtest an approach inspired by Joel Greenblatt’s Magic Formula — with Brazil and US data, kept clear and open.
“Making the simple complicated is commonplace; making the complicated simple, awesomely simple, that's creativity.”
Creator of the Magic Formula
Who is Joel Greenblatt?
Joel Greenblatt is an American investor, hedge fund manager, professor, and author. He founded Gotham Capital, whose flagship fund achieved a compound annual return of roughly 40% from 1985 to 2005 — one of the most respected track records in modern value investing.
An adjunct professor at Columbia Business School, the same institution where Benjamin Graham, a cornerstone of value investing, taught decades earlier. Greenblatt published "The Little Book That Beats the Market" (2005) to make a central idea accessible: buy quality companies at low prices, systematically and with discipline.
The Magic Formula grew out of this work: a quantitative strategy that ranks stocks by Earnings Yield (how cheap a company is) and Return on Capital (how efficiently it operates). Greenblatt tested the approach extensively in U.S. markets and documented historical returns above benchmark indices — always with the caveat that past results do not guarantee future performance.
Platform built by Rafael Alves Tarachuck
Educational tool
This is a study tool, not investment advice.
Fórmula Joel is independent and is not an official Joel Greenblatt or Magic Formula Investing product. It exists so you can learn and experiment with the Magic Formula methodology using historical data. Nothing here is financial advice, an offer, or a recommendation to buy or sell any asset. Past performance does not guarantee future results. Investment decisions are your own responsibility — consult a licensed professional.