Joel Greenblatt’s concise investment guide introduces a straightforward, quantitative approach to stock selection. This value investing strategy focuses on identifying companies with high earnings yields and high returns on capital. An example application might involve ranking companies based on these two metrics and investing in the top-ranked selections.
This accessible approach aims to demystify successful investing by providing a clear, replicable system. Proponents suggest it empowers individual investors to potentially outperform market averages over the long term. Emerging from the established principles of value investing popularized by Benjamin Graham, this particular method adds a systematic, quantitative framework for easier practical application.
