An investment strategy outlined by Joel Greenblatt, an investor and Wharton graduate. It aims to teach investors the principles of value investing in the stock market and designed to beat the market’s average yearly returns. The said strategy is presented in his book, The Little Book that Beats the Market.

Investors can use his online stock screener tool to choose 20 to 30 top-ranked companies to invest, based on its earnings and return to capital.