The Little Book That Still Beats the Market
Hightlight
- Ethics
- Historical
- Leadership
- Psychology
The Little Book That Still Beats the Market
Author
Joel Greenblatt
Published Date
2005 (updated in 2010)
Page Count
208
Overview
“The Little Book That Still Beats the Market” by Joel Greenblatt is a concise guide to stock market investing. Greenblatt, a successful fund manager, introduces the “magic formula,” a simple strategy for buying good companies at bargain prices. The book is aimed at individual investors and seeks to demystify the stock-picking process with a straightforward and effective approach.
Key Themes
- The Magic Formula: Introduces a simple formula for identifying undervalued stocks.
- Value Investing Principles: Emphasizes the principles of value investing and long-term investment.
- Market Efficiency and Inefficiency: Discusses the balance between market efficiency and opportunities to exploit market inefficiencies.
- Investment Psychology: Covers the psychological aspects of investing and the importance of discipline.
Historical Context
First published in the mid-2000s, the book offers an easy-to-understand investment strategy relevant in both bull and bear markets, appealing to investors in various market conditions.
Author’s Background
Joel Greenblatt is a hedge fund manager and a professor at Columbia Business School, known for his expertise in value investing and stock market education.
Impact and Legacy
Greenblatt’s “magic formula” has gained significant attention for its simplicity and effectiveness, making the book popular among individual investors and finance professionals.
Strengths and Weaknesses
Strengths: The book’s simple and clear approach makes it accessible to novice investors, and its strategy is based on sound investment principles.
Weaknesses: Some critics argue that the formula may oversimplify the complexities of stock picking and market dynamics.
Who Should Read This?
Ideal for individual investors seeking a straightforward and proven strategy for stock market investing, especially those interested in value investing.