NEW YORK ( TheStreet) -- Joel Greenblatt created a splash when he published The Little Book that Beats the Market, in 2005. Providing a simple guide to buying low-priced stocks, the book was a bestseller and attracted a legion of followers. A host of Web sites began tracking Greenblatt's system.The approach calls for buying 30 undervalued stocks and holding them for a year. While the strategy is simple, it comes with a catch. As Greenblatt outlines in the book, unloved stocks can be volatile. In bad years, the system can drop sharply, and there have been long periods when the stocks lagged the market. Greenblatt argues that his value stocks can produce huge gains over time -- but only for investors with the patience to hold on for years.
4 Funds to Mimic Joel Greenblatt's Winning Ways
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.