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Joel Greenblatt




In 1985, Greenblatt started a hedge fund, Gotham Capital , with 7 million dollars, most of which was provided by Michael Milken . In the 10-year period from 1985 to 1995, the fund achieved a surprising 50% annualized return (before fees were taken out). In simpler terms, $1,000 invested in 1985 would have yielded $52,000 in 1995.

He calls his investment strategy "magic formula investing", which is a fancy name for a simple formula for determining which stocks to buy: cheap stocks with a high Earnings Yield and a high Return On Capital . He touts the success of his magic formula in his book '' The Little Book That Beats The Market '', citing that it does in fact beat the market 96% of the time, and has averaged a 17-year annual return of 30.8%Zen, Brian and Hamai, Garrett. " Joel Greenblatt Speaking at NYSSA ". December 28, 2005..

Greenblatt has published two books about finance, specifically the Stock Market :


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