According to Compounding Quality on Twitter, Joel Greenblatt emphasizes that even outstanding businesses can become poor investments if purchased at excessive valuations. To address this, Greenblatt introduced a second filter—Earnings Yield, which measures profits relative to price (Source: @QCompounding, May 22, 2025). For traders, utilizing Earnings Yield helps identify undervalued stocks, improving entry points and risk management. This disciplined approach can also affect crypto market sentiment, as investors seeking value may shift capital between equities and digital assets when traditional markets appear overvalued.