When the fool meets the magic formula

The fool i was talking about here is not any other fool, it's The Motley Fool.

It seems like The Motley Fool has read Joel Greenblatt little book and got hold of the magic formula to beat the market. They have kindly used the magic to rank the 30 companies making up the STI index. Here is a link to the result.

If you buy all the 30 companies of the STI index at equal weightage, you are as good as the market. To beat the market, you will have to do something different. Perhaps you can use this ranking to help you beat the market.

Note that beating the market does not means positive returns. If the market, or STI, drops by 10% in a single year, you will beat the market if you get a -5% return in that year. However in a long run, past data has shown that the STI do get a decent return of about 7%. Below is a screenshot of the SPDR Straits Time Index ETF fund performance.