We’d all love to find a foolproof investing method that makes money in both good times and bad. Sadly, it doesn’t exist. But some methods make more sense and have a better track record than others. One such method is Joel Greenblatt’s so-called magic formula: buying good-quality businesses at cheap prices.
How does it work?
Greenblatt sets out his formula in his classic The Little Book That Beats The Market, a short, well-written book that is a must for any investor’s bookshelf. His approach is very simple – it’s all about looking at a company’s returns as if they [...]
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