The two simple numbers behind successful stock-picking

Stock market investors are right to be wary of magic formulas - the market has more than its fair share of fallen gurus, says Chris Mayer of The Daily Reckoning. But with annualised returns of 40% since 1985, Joel Greenblatt deserves more attention than most. The secret to finding good quality companies at bargain prices boils down to two simple numbers...

In some ways, the average investor is like a man looking for the right combination to get at the riches in a vault. Unlocking the market's treasures - knowing which stocks to buy and sell - is a difficult mystery seemingly beyond his powers.

If there were only a simple and reliable way to find great stocks, a combination to look for or a magic formula of some kind...something the average investor can use and depend on...

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