Joel Greenblatt is an adjunct professor at the Columbia University Graduate School of Business in New York, and the founder of Gotham capital, a hedge fund which returned an incredible 40 per cent to investors every year for 20 years. Known for books... like 'You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits' and 'The Little Book That Beats the Market', his method combines companies with high earnings yield and those with high return on invested capital (RoIC).
In the Indian context, to begin with, we have included companies with over 20 per cent return on capital employed (RoCE) in each of the last five years. The selected companies are ranked on the basis of earnings yield, followed by RoCE. The top 30 stocks are selected on the basis of combined ranking. Read more