The Little Book That Beats the Market: Joel Greenblatt’s Magic Formula Explained

Joel Greenblatt’s The Little Book That Beats the Market lays out a straightforward, data-driven strategy for beating Wall Street. His Magic Formula ranks stocks based on earnings yield and return on capital, identifying undervalued, high-performing businesses. In this episode, we break down how Greenblatt’s system works, why it has historically outperformed, and how any investor can apply it today—without relying on speculation or emotions. If you’re looking for a proven, logic-based approach to investing, this episode is a must-listen.