In , Joel Greenblatt published a book that is already considered one of the classics of finance literature. In The Little Book that Beats the Market—a New. Use a free and simple stock screening tool to select Magic Formula stocks, as described in Joel Greenblatt's book The Little Book That Beats the Market. Also, maybe Jason does a lit- tle better than I figure and I get more than $1,, but he could do worse, too!” THE LITTLE BOOK THAT BEATS THE MARKET. .
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I also just read The Little Book That Beats the Market by Joel Greenblatt ( Columbia Business School Professor and hedge fund manager) – he also talks about. The Little Book That Beats the Market book. Read reviews from the world's largest community for readers. Two years in MBA school won't teach you how. The Little Book That Still Beats the Market book. Read reviews from the world's largest community for readers. In , Joel Greenblatt published a b.
While not new Buffett, Graham , his light and easy-going way of describing what a business is and how to think about it, is stellar. While the method may not be for everyone, it is certainly a good starting point for everyone and there are some pretty bad investing books out there detrimental to the health of your wallet.
This is not one of them. My brother, who is in finance, suggested this for me because it is easy to understand. He was completely right, Greenblat was able to explain market analysis so well a 10 year old could go out tomorrow and be able to choose stocks well.
He used interesting metaphors with his kids and their candy business as if they were a multi-million dollar company. After reading this Being interested in finance at an early age is pretty difficult for me because of all of the complex terminology and concepts.
After reading this book I feel I can finally now understand what my brother and my dad are talking about at the dinner table. It is amazing that Greenblat was capable of explaining something that people get paid millions of dollars to do, to a 15 year old.
I would recommend this to anyone interested in finance.
Its about picking stocks with high Return on Capital and available in bargain prices. But the main thing is you have to believe in it enough to stick with it, even during temporary periods where even the market average is beating your results.
Also, important caveat: he uses historical information and he explains the principles behind the strategy i. But, the stock market is a capricious beast: no one can be sure that for the next thirty years it won't suddenly start behaving in a wildly different manner. So, no guarantees, no matter how much sense anyone's advice seems to make. Greenblatt also glosses over a few things, like fees even for intermittent stock downloads, the fees can add up , and he barely touches on taxes, which can also take a bite out of your investment.
He does mention IRAs, but does not explain them. That's understandable; this is a slim book and going into taxes and retirement funds and exactly where and how to download stocks would bloat it quickly.
But while I think his advice is sound, this book alone doesn't quite give you enough information to run out and start investing.
He uses a lot of the same key things we look for in Rule 1 investing. Obviously for a dollar of EPS, the lower the price of the stock, the higher the yield.
Historically it has a PE of We like to see the Yield above the long term T-Bill rate. Now imagine that you own the entire business. As Rule 1 investors we like to do that, so that is no stretch. And that is the joy of Yield. Yield is the great secret that Warren Buffett has told us about if we were listening. It is the secret that makes huge fortunes out of little ones. It is the power of compounding seen in our investment lives.