Joel Greenblatt - The Little Book That Beats Th... ❲Desktop❳

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

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. Joel Greenblatt - The Little Book That Beats th...

The historical data is staggering. From 1988 to 2004, the Magic Formula returned roughly , compared to the S&P 500’s 12.4%. While it may not always hit those heights today, the core principle—buying quality on sale—remains a foundational pillar of value investing. ⚠️ The "Catch" (Why Everyone Doesn't Do It) If it’s so simple, why isn't everyone a millionaire? This measures how "good" the business is