One of the most compelling investing systems developed in recent years is Joel Greenblatt’s ‘Magic Formula’ approach which is documented on the magicformulainvesting.com website as well as Mr. Greenblatt’s The Little Book That Beats the Market. The formula ranks stocks ...

Joel Greenblatt outlined his “magic formula” for stock market investing in The Little Book That Beats the Market. Mr. Greenblatt’s formula ranks stocks based on two simple and easily calculated figures: earnings yield and return on capital. Rather than merely ...