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.
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