The Little Book That Still Beats the Market
- Downloads：9687
- Type：Epub+TxT+PDF+Mobi
- Create Date：2021-06-03 08:55:05
- Update Date：2025-09-06
- Status：finish
- Author：Joel Greenblatt
- ISBN：0470624159
- Environment：PC/Android/iPhone/iPad/Kindle
- Download
Summary
In 2005， 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 York Times bestseller with 300，000 copies in print--Greenblatt explained how investors can outperform the popular market averages by simply and systematically applying a formula that seeks out good businesses when they are available at bargain prices。 Now， with a new Introduction and Afterword for 2010， The Little Book that Still Beats the Market updates and expands upon the research findings from the original book。 Included are data and analysis covering the recent financial crisis and model performance through the end of 2009。 In a straightforward and accessible style， the book explores the basic principles of successful stock market investing and then reveals the author's time-tested formula that makes buying above average companies at below average prices automatic。 Though the formula has been extensively tested and is a breakthrough in the academic and professional world， Greenblatt explains it using 6th grade math， plain language and humor。 He shows how to use his method to beat both the market and professional managers by a wide margin。 You'll also learn why success eludes almost all individual and professional investors， and why the formula will continue to work even after everyone "knows" it。 While the formula may be simple， understanding why the formula works is the true key to success for investors。 The book will take readers on a step-by-step journey so that they can learn the principles of value investing in a way that will provide them with a long term strategy that they can understand and stick with through both good and bad periods for the stock market。
As the Wall Street Journal stated about the original edition， "Mr。 Greenblatt。。。says his goal was to provide advice that， while sophisticated， could be understood and followed by his five children， ages 6 to 15。 They are in luck。 His 'Little Book' is one of the best， clearest guides to value investing out there。"
As the Wall Street Journal stated about the original edition， "Mr。 Greenblatt。。。says his goal was to provide advice that， while sophisticated， could be understood and followed by his five children， ages 6 to 15。 They are in luck。 His 'Little Book' is one of the best， clearest guides to value investing out there。"
Reviews
Sean Nguyen
，
The book is indeed tiny。 Very easy to read considering you are new to investing and the stock market。 However， it brings very little value to intermediate readers。
Brad Bevers
，
The original edition of this book was either the first or second book I read on the stock market years ago， and it has fascinated me since then。 I read the updated version this week and am still really compelled by the ideas that Greenblatt lays out here。 It's a method that depends on a simple formula， but is also extremely difficult because you will have to fight against yourself to implement it correctly。 The challenge of diversification mixed with not researching the companies you are investi The original edition of this book was either the first or second book I read on the stock market years ago， and it has fascinated me since then。 I read the updated version this week and am still really compelled by the ideas that Greenblatt lays out here。 It's a method that depends on a simple formula， but is also extremely difficult because you will have to fight against yourself to implement it correctly。 The challenge of diversification mixed with not researching the companies you are investing in and being picky about them makes this method a tough one to implement。 If you are confused about why a method that could consistently have above average returns is still not used widely， you should read the book。 Highly recommended。 。。。more
Matt
，
I gave this book five stars as for a few reasons。 First， the author makes a compelling case for his strategy while freely admitting the challenges associated with it。 Second， he keeps the book brief。 And last， he does a great job of blending humor to keep it light。I am not certain if I will implement the investment strategy proposed as， by the author's own admission， it can be time consuming。 But I am considering。 I gave this book five stars as for a few reasons。 First， the author makes a compelling case for his strategy while freely admitting the challenges associated with it。 Second， he keeps the book brief。 And last， he does a great job of blending humor to keep it light。I am not certain if I will implement the investment strategy proposed as， by the author's own admission， it can be time consuming。 But I am considering。 。。。more
Raghav Bansal
，
Straight-forward， humourous， and may come off as a too-good-to-be-true book-selling scam to most people。 But in my own short journey in the world of stocks， the premise behind the "magic formula" seems pretty logical。 The extensive data to support it's claims of outperformance adds merit to the arguments discussed。 It's a short， easy-to-understand book that will teach something to everyone。A boil-down summary: Generally， you have no business being in individual stocks， but if you must， then inve Straight-forward， humourous， and may come off as a too-good-to-be-true book-selling scam to most people。 But in my own short journey in the world of stocks， the premise behind the "magic formula" seems pretty logical。 The extensive data to support it's claims of outperformance adds merit to the arguments discussed。 It's a short， easy-to-understand book that will teach something to everyone。A boil-down summary: Generally， you have no business being in individual stocks， but if you must， then invest in a diversified basket of above-average businesses available at below-average price and rotate them frequently in your portfolio and follow this strategy for atleast 10 years。 Such stock selection can be aided by the magic formula as explained in the book along with relevant tools available to ease the process。 。。。more
Cesar Tarrillo
，
Nos precisa el poder del inters compuesto y nos enseña a seleccionar buenas empresas y pensar a largo plazo
Brian Sachetta
，
As the title hints， this one is centered around a set of simple strategies （called the “magic formula”） that helps investors beat the market。 The author pulls no punches here — he readily admits the pros and cons of such a strategy and invites readers to try their hand at it， despite the fact that it doesn’t necessarily win all the time。But， as he also suggests， the fact that the formula doesn’t beat every strategy when analyzed over all time periods is exactly what makes it so good; success wit As the title hints， this one is centered around a set of simple strategies （called the “magic formula”） that helps investors beat the market。 The author pulls no punches here — he readily admits the pros and cons of such a strategy and invites readers to try their hand at it， despite the fact that it doesn’t necessarily win all the time。But， as he also suggests， the fact that the formula doesn’t beat every strategy when analyzed over all time periods is exactly what makes it so good; success with it requires patience， and some investors can’t stand to wait very long。 That lack of patience prevents everyone from piling into the book’s core methodology and sending the companies it promotes to prices that no longer make sense。It’s sometimes a bit confusing that solid investing can be so simple。 But this book， and all the statistics and historical data within it， show us that simple really can lead to great results。 And results are all that matters in investing — not the level of difficulty or complexity of one's approach。Definitely check this one out if you’re looking for a new perspective。-Brian SachettaAuthor of “Get Out of Your Head” 。。。more
Ashutosh Singh
，
Worth reading to learn a new strategy on investment but be cautious to only invest based on the suggested approach。
Caleb
，
Very eye opening and very easy to understand。 I learned a lot and will be using Magic Formula investing for at least a portion of my portfolio。 Everyone tries to overcomplicate things， but it's often the simple strategies that work best， but they require discipline。 Very eye opening and very easy to understand。 I learned a lot and will be using Magic Formula investing for at least a portion of my portfolio。 Everyone tries to overcomplicate things， but it's often the simple strategies that work best， but they require discipline。 。。。more
Willem Malfait
，
The little Book that still beats the market by Joel Greenblatt A book for people who are unfamiliar with trading and investing。 The book helps to understand how this all works and told in an easy， structured manner。 On the other hand， it is a bit too repetitive at some sections in the book。 But this simplicity is explaining how the basics work in investing and what you should know when to start。 I would only recommend this book if you are unknown to the word of investing。
Shivangi Das
，
I am so ready for my money to make money。
Héctor Pastor
，
This book is just fantastic。 100% recommended to anybody trying to obtain decent returns in the stock market。 The most admirable quality of the book is that anybody could understand it。 No argot， no complex concepts。 Plain and simple。
Prakhar Agrawal
，
A decent book
Kobe
，
The little book that still beats the market is a simple， well-written book for investment dummies。 It guides its readers towards 100% certain profits。 By applying two basic stock-market principles， Greenblatt has created a strategy that beats the market over the long term。 The hard part？ Actually believing in the magic formula long enough so that it can bear its fruits， even during market downturns。
Sal
，
1。tStep 1Go to magicformulainvesting。com2。tStep 2Follow the instructions for choosing company size （e。g。， companies with market capitalizations over $50 million， or over $200 million， or over $1 billion， etc。）。 For most individuals， companies with market capitalizations above $50 million or $100 million should be of sufficient size。3。tStep 3Follow the instructions to obtain a list of top-ranked magic formula companies4。tStep 4Buy five to seven top-ranked companies。 To start， invest only 20 to 33 1。tStep 1Go to magicformulainvesting。com2。tStep 2Follow the instructions for choosing company size （e。g。， companies with market capitalizations over $50 million， or over $200 million， or over $1 billion， etc。）。 For most individuals， companies with market capitalizations above $50 million or $100 million should be of sufficient size。3。tStep 3Follow the instructions to obtain a list of top-ranked magic formula companies4。tStep 4Buy five to seven top-ranked companies。 To start， invest only 20 to 33 percent of the money you intend to invest during the first year。 5。tStep 5Repeat Step 4 every two to three months until you have invested all of the money you have chosen to allocate to your magic formula portfolio。 After nine or ten months， this should result in a portfolio of 20 to 30 stocks （e。g。， seven stocks every three months， five or six stocks every two months）。6。tStep 6Sell each stock after holding it for one year。 For taxable accounts， sell winners after holding them a few days more than one year and sell losers after holding them a few days less than one year （as previously described）。 Use the proceeds from any sale and any additional investment money to replace the sold companies with an equal number of new magic formula selections （Step 4）。7。tStep 7Continue this process for many years。 Remember， you must be committed to continuing this process for a minimum of three to five years， regardless of results。 Otherwise， you will most likely quit before the magic formula has a chance to work。 。。。more
Kenny
，
It's basically about how Index Funds are the best long-term strategy for wealth。 It's basically about how Index Funds are the best long-term strategy for wealth。 。。。more
Ankit
，
Simle things in simple ways ！No beating by the bush， hitting bullseye with a simple tool explained in a simpler way。 I would really recommed this。
Joakim Wikström
，
Good perspectives on investing， explained in simple terms。 I think this is a must-read for all beginners in the stock market。
Justin Gatt
，
Would be 3。5 if this app allowed half stars。
Mohammad Abbas
，
Enjoyable style of writing， the efficacy of 'the magic formula' remains to be tested。 Enjoyable style of writing， the efficacy of 'the magic formula' remains to be tested。 。。。more
Jeff
，
This book is for you if you are looking for a simple investment method that does not involve index funds or mutual funds。 Mr。 Greenblatt's writing is related to teachings of Benjamin Graham， Warren Buffett， Charlie Munger， and Howard Marks。Easy read that can be completed in a day or two。 This book is for you if you are looking for a simple investment method that does not involve index funds or mutual funds。 Mr。 Greenblatt's writing is related to teachings of Benjamin Graham， Warren Buffett， Charlie Munger， and Howard Marks。Easy read that can be completed in a day or two。 。。。more
Andrew
，
I wish I had read the reviews before purchasing this book。 "This book should have been a blog" they said - no kidding。 I bought the book on recommendation after watching a video on value investing。 That 20-minute video more-or-less captured everything Joel Greenblatt had to say。 I wish I had read the reviews before purchasing this book。 "This book should have been a blog" they said - no kidding。 I bought the book on recommendation after watching a video on value investing。 That 20-minute video more-or-less captured everything Joel Greenblatt had to say。 。。。more
Jevgenij
，
The little book that is still too long :） There is ONE idea （good or not - time will tell） in this book， so definitely too many pages。
Billy
，
I learned about this book by watching the Great Courses class on The Art of Investing。 Right now， probably mostly due to Robinhood， there seems to be a bit of a fad for kids to buy stocks。 This book was written by Mr。 Greenblatt with his kids in mind。 The current edition is dated 2010 so it is now a little dated， but it does go over the fundamentals of stock investing using an example kids can understand。 I do plan to give it to my grandkids to help them understand what they are doing and maybe I learned about this book by watching the Great Courses class on The Art of Investing。 Right now， probably mostly due to Robinhood， there seems to be a bit of a fad for kids to buy stocks。 This book was written by Mr。 Greenblatt with his kids in mind。 The current edition is dated 2010 so it is now a little dated， but it does go over the fundamentals of stock investing using an example kids can understand。 I do plan to give it to my grandkids to help them understand what they are doing and maybe they will even sign up for the free "magicformulainvesting。com" just to see what a tried system suggests。 Warning- lots of dumb Dad humor included。 。。。more
Francois Chalifour
，
Simple Approach - be disciplined for a long timeSimple， straightforward，logical and does mince words about needing to be patient and to sticking with the approach for many years。
Daniel Hoyos
，
The book fulfills its mission， I personally believe that anyone outside the financial sector can understand and put into practice on their own the strategy outlined in the book， without a doubt it is a good book if you want to get started in quantitative investing。 You can find many comments about this book that it is too simple for someone with “advanced knowledge”， but I think there are moments within the book that we should all always remember when applying quantitative strategies， be it the The book fulfills its mission， I personally believe that anyone outside the financial sector can understand and put into practice on their own the strategy outlined in the book， without a doubt it is a good book if you want to get started in quantitative investing。 You can find many comments about this book that it is too simple for someone with “advanced knowledge”， but I think there are moments within the book that we should all always remember when applying quantitative strategies， be it the book or any other （specifically when Greenblatt defends the logical workings behind the “magic formula”）。 。。。more
Kevin Philips
，
This is a good book， and it is overly simplistic。 But I think all the criticism I've read is completely unwarrented。 Look， if you are already well-read on value investing， and you read the first chapter （which goes into detail about a very simple business covering very simple terminology illustrating very simple financial concepts） and thought that it seemed aimed at another reader， then proceeded to read it， and were surprised that it was not full of nuance and detail fit for the experienced in This is a good book， and it is overly simplistic。 But I think all the criticism I've read is completely unwarrented。 Look， if you are already well-read on value investing， and you read the first chapter （which goes into detail about a very simple business covering very simple terminology illustrating very simple financial concepts） and thought that it seemed aimed at another reader， then proceeded to read it， and were surprised that it was not full of nuance and detail fit for the experienced investor， that's on you。 This book is a great "if you only read one，" kind of book。 It gives the basic logic of a good system。 Then it tells you exactly how to follow the system。 That logic and that system do beat the market。 And that's all you really need to know。 That's the entire aim of the book。 If you want much more than that， probably look elsewhere。 It's not a book for satisfying intellectual curiosity。 But I can't fault it for not being something it clearly is not meant to be。 The returns are real。 You can know nothing about finance but get serious returns by only following this book。 That， above all else， is what matters， and why this book earns the full 5 stars。 Also， now there is a website that will automatically find all the stocks that this formula recommends， which is a nice shortlist for choosing stocks。 。。。more
Logan
，
I loved this book because it's not your normal stock market book， it makes it fun to read about the market。 While it does teach you a lot about the stock market， it does only teach you the BASICS for the stock market and very little about ETFs， hedge funds， or mutual funds。 Overall， even though I'm only 13 years old， this book has prepared me for the future if I ever invest in stocks。 I loved this book because it's not your normal stock market book， it makes it fun to read about the market。 While it does teach you a lot about the stock market， it does only teach you the BASICS for the stock market and very little about ETFs， hedge funds， or mutual funds。 Overall， even though I'm only 13 years old， this book has prepared me for the future if I ever invest in stocks。 。。。more
Ernestasia Siahaan
，
I’ve used the Magic Formula Investing website for stock picking thanks to someone telling me about it， but I want to better understand the method behind the stock screening。 The book explained the method， and so I give it a 4 star。The way this book is written is so。。。 basic and at times cringey， but it actually explains this one approach to stock picking well， and also tells you how to actually do the investing。 This is unlike other books I’ve read related to investing （*cough* Rich something *c I’ve used the Magic Formula Investing website for stock picking thanks to someone telling me about it， but I want to better understand the method behind the stock screening。 The book explained the method， and so I give it a 4 star。The way this book is written is so。。。 basic and at times cringey， but it actually explains this one approach to stock picking well， and also tells you how to actually do the investing。 This is unlike other books I’ve read related to investing （*cough* Rich something *cough* Poor something） that goes on and on about how you need to invest but doesn’t really tell you how！ So， another reason I give this a 4 star， despite its cringey style of writing: a beginner can read this book and actually get an idea of where to start with investing。 。。。more
Teodor
，
This book is good for someone with no investing experience， containing basic notions （somewhat repetitive， though） with some jokes sprinkled in。 It is also fairly critical about investing misconceptions and practices， and it makes the reader think about how would be fair to value a company。
RJ Martino
，