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

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

You have to hold stocks for a year, regardless of the news. Joel Greenblatt - The Little Book That Beats th...

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

Explain how to (like utilities or banks) that the formula usually ignores. Joel Greenblatt - The Little Book That Beats th...

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.