The Little Book That Beats the Market by Joel Greenblatt presents a straightforward and accessible investment strategy known as “magic formula investing.” Greenblatt introduces a systematic approach for selecting stocks based on two key financial metrics: return on capital and earnings yield. The book explains how to use these metrics to identify undervalued companies with strong potential for growth. Greenblatt’s method is designed to simplify stock selection and deliver superior long-term returns, making it a practical guide for both novice and experienced investors.