Fusion Strategy by Joel Greenblatt

A strategy to capitalize on business cycles →

Hey there!

The Nifty PSU Bank index gave a more than 50% return in the past 1 year. If you knew the Fusion Strategy by Joel Greenblatt, you could have been part of this!

Let’s learn how…

➡️ Fusion investing is a method of ranking companies based on certain parameters. Ranking stocks based on sales growth, ROCE, and P/B, the top 5 can then be filtered for detailed analysis.

➡️ This strategy has given a return of 40.9% CAGR when backtested for the last 10 years and a CAGR of 70.4% when forward-tested for 3 years.

➡️ This pays off best when it is applied to undervalued sectors, as “hot stocks” that are already performing well in the last 2-3 years would have already incorporated future financials in the current price. A sector is undervalued if :

  • Its valuations have cooled down in the last 4-5 years

  • It’s facing hiccups due to government regulations or changes in demand & supply

  • An uptrend is signaled by increases seen in promoters’ holding, capex, holdings of ace investors, and cash

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📌 Learn Cyclical Investing at 30% OFF

To learn how to identify undervalued sectors, get the Cyclical Investing Course by Mr. Nikhil Gangil - the founder of Intrinsic Value Equity Advisors.

Use NL30 at checkout for a 30% off ⬇️

You can also check out his smallcase which has given a CAGR of more than 24% in last 2 years.

None of the above are intended as recommendations. Please consult a registered advisor before buying/selling.

✍🏼 If you have any questions or just want to say hi, feel free to write to us at [email protected]

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