The Magic Formula Is Working For One Online Publisher

Online, January 4, 2011 (Newswire.com) - On November 19, 2005, Wiley published Joel Greenblatt's "The Little Book That Beats The Market" and exposed a simple formula that can help any investor outperform the market.

One newsletter editor has been putting it to the test and having massive success doing it. "It works, in today's economy, in the 2005 economy, finding stocks that have high earnings yields compared to the price you pay is an absolute way to achieve success buying and selling stock," says Jonathan Poland, the ex-stockbroker turned investment publisher.

While his track record is just 9 years long, it pays to listen to him. "When I first started picking stocks in 2002, people laughed because I was barely an adult, but now those same ideas have documented over 3,000% using the formula laid out by Professor Greenblatt, with a small deviation."

The deviation is that instead of buying 30 stocks a year like Greenblatt says do, an investor should buy what the market gives them and limit most years to well under 30 stock buys. Of course, in the magic formula strategy, investors are instructed to hold all stocks for one year, selling the losers before the end of the year and the winners after the end of the year for tax reasons.

Jonathan explains that "there is a lot of overlap in this strategy because the market will not always give you the best ideas in January of each year. Look at 2009 for example, when the market hit bottom in March and that was the time to really be buying stocks."

Since beginning his investment career in South Florida in 2001, Mr. Poland has helped thousands of investors find the right stocks for their portfolios through a simple strategy initially highlighted by Benjamin Graham and used with wild success by Warren Buffett.

"When I was a broker, the guys at the firm would want the hottest stock or the latest innovative idea. They were recommending stocks like Fuel Cell, Taser, and Sirius Satellite Radio because it had a great story. I wanted to bring the fundamentals into play because that's what excited me," he goes on to explain.

Boring seems to work well for subscribers of Jonathan's newsletter, www.thepolandreport. In 2010 his ideas went 22 for 22 producing a total gain of 36%. Despite beating the market by 23% 2010 was a down year compared to his average rate of return - 47%.

"I never set out to make investors 50% a year, just to outperform the market. Truthfully, 47% a year is not sustainable, but if I can help investors manage their own portfolio to the tune of 20% or 30% a year, then over a decade they will build real wealth for themselves and their families."

Poland cites that according to Morningstar.com the average mutual fund returned less than 5% over the last 10 years and just 27 produced 20% or more annually.

"I know I can do better than that," he exclaims, because "those guys have so much money to work with, billions, that I would have to have tens of thousands of subscribers to be influencing that much money."

Finally, he points out that there are dozens of strategies that have worked for other people, but that looking at the fundamentals has been the way he's consistently found great investment ideas. It would be wise to look closer at each company's earnings next time you invest and consider following the magic formula.

For more information on Jonathan Poland and The Poland Report visit http://www.thepolandreport.com.