Graham vs. Greenblatt (Session 4) Buy some cheap earnings


falling+money Graham vs. Greenblatt (Session 4) Buy some cheap earnings
In our last post we looked at Greenblatt’s use of Return on Capital as a means of identifying quality companies that know how to turn a small investment into a substantial return. In this posting we will look at his next criteria earnings yield.

Graham vs. Greenblatt (Session 3) Return on Capital


gold+bar Graham vs. Greenblatt (Session 3) Return on CapitalGreenblatt in his book The Little Book that Beats the Market advocated a simple method for attaining substantial stock returns. In this series we are looking at the particulars of this investing theory to both understand why he advocated the elements of this theory and what Benjamin Graham would have thought of the approach that Greenblatt was advocating. The next part in this series looks at Return on Capital or ROC.