High Earnings Yield benefits long-term investors

I found this great video interview with value investor Joel Greenblatt. I agree with his assessment on pretty much everything in this video. Greenblatt says, “High earnings yield now, means there are low expectations for the future. Those are precisely the stocks that institutional managers, who are worried about doing well in the next year or two, systematically avoid.”

I’ve definitely come around to this assessment. Open Text (OTEX:TSE) (OTEX:NASDAQ) is a recent example of high earnings yield.

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