Joel Greenblatt - The Little Book That Beats Th... Official

This tells you how "cheap" a stock is. It compares a company's profits to its enterprise value. You want a high yield—more bang for your buck.

Buy the top 20–30 stocks that have the best combined ranking of these two factors. 📈 Does It Actually Work? Joel Greenblatt - The Little Book That Beats th...

The formula can trail the market for 2 or 3 years at a time. This tells you how "cheap" a stock is

Explain how to (like utilities or banks) that the formula usually ignores. Buy the top 20–30 stocks that have the

You have to hold stocks for a year, regardless of the news.

This measures how "good" the business is. It shows how efficiently the company turns its investments into profits. You want a high ROC.

Most people sell when their "Magic" stocks go down, which is exactly when the strategy requires discipline.