Joel Greenblatt produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades. In his 2005 bestseller The Little Book That Beats The Market, Greenblatt laid out a very simple two variable strategy that more than doubled the market return in his testing.

In this episode, we take a deep dive into the magic formula, how it works, and its pros and cons.

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