Investment Checklist Tip #10 – The Earnings Yield
In today’s video, we talk about one of the two metrics that Joel Greenblatt uses to find stocks for his hedge funds at Goliath Capital. He explains these in his book, The Little Book that Beats the Market. The first of the two metrics are Earnings Yield.
We want companies that have a higher Earnings Yield, preferably over 10%. This means that the company is earning more than the price we are paying to by the stock.
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