JuSun Buying above average stocks at below average valuations can be a winning strategy. In fact, that's a key reason for how Joel Greenblatt's "magic formula" of investing has been successful. Greenblatt is an American hedge fund manager who championed the strategy of buying stocks with below average PE and high returns on invested capital. When these two forces work in tandem, and combined with a decent starting dividend yield, the investor can see potentially strong returns over the long run. This br ...