Kindle Price: | $17.00 |
Sold by: | JOHN WILEY AND SONS INC Price set by seller. |
Your Memberships & Subscriptions
Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer - no Kindle device required.
Read instantly on your browser with Kindle for Web.
Using your mobile phone camera - scan the code below and download the Kindle app.
Audible sample Sample
Follow the author
OK
The Little Book That Still Beats the Market (Little Books. Big Profits 29) Kindle Edition
Explore your book, then jump right back to where you left off with Page Flip.
View high quality images that let you zoom in to take a closer look.
Enjoy features only possible in digital – start reading right away, carry your library with you, adjust the font, create shareable notes and highlights, and more.
Discover additional details about the events, people, and places in your book, with Wikipedia integration.
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.”
- LanguageEnglish
- PublisherWiley
- Publication dateJuly 16, 2010
- File size884 KB
- The Big Secret for the Small Investor: A New Route to Long-Term Investment SuccessKindle Edition$14.99$14.99
- The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the MarketKindle Edition$9.99$9.99
- You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market ProfitsKindle Edition$12.59$12.59
- The Education of a Value Investor: My Transformative Quest for Wealth, Wisdom, and EnlightenmentKindle Edition$14.99$14.99
- One Up on Wall Street: How To Use What You Already Know To Make Money in the MarketKindle Edition$9.97$9.97
- Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics)Kindle Edition$17.00$17.00
- Richer, Wiser, Happier: How the World's Greatest Investors Win in Markets and LifeKindle Edition$14.99$14.99
- Detecting Accounting Fraud Before It's Too Late (The Wiley Finance Series)Kindle Edition$42.00$42.00
- The Art of Quality Investing: How to invest in the best companies in the worldKindle Edition$21.00$21.00
Customers who bought this item also bought
Get to know this book
What's it about?
This book is about 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.Popular highlight
Second, once we come up with our estimate for how much Jason’s business will earn next year, we have to determine how confident we are in our prediction.3,496 Kindle readers highlighted thisPopular highlight
The third little detail we haven’t yet considered is that next year is only one year.3,484 Kindle readers highlighted thisPopular highlight
In short, companies that achieve a high return on capital are likely to have a special advantage of some kind. That special advantage keeps competitors from destroying the ability to earn above-average profits.2,326 Kindle readers highlighted this
From the brand
-
The Little Books, Big Profits series packs practical and powerful financial advice from some of the industry's leading influencers in one small, but mighty package. The series presents financial strategies in general and understandable terms and are perfect for investors at all levels looking to make smart decisions in the finance market.
-
-
-
-
-
-
-
Editorial Reviews
Amazon.com Review
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.”
An Exclusive Q&A with Author Joel Greenblatt
It's been five years since you first published The Little Book That Beats the Market. Have your thoughts changed at all about the effectiveness of value investing?In my mind, the principles of value investing have not changed. As we've learned yet again, markets can be volatile and emotional. They often go to extremes of pessimism and optimism, and prices can and often do fluctuate wildly and significantly over short periods of time. As a result, Mr. Market can provide some excellent opportunities to purchase bargain priced stocks when people are unduly pessimistic. This is where value investing comes in. Buying companies below their true value is the road to being a successful investor. The magic formula found in the Little Book seeks to buy a group of above average companies but only when they are available at below average prices. Because it is a formula, it seeks to do this in an unemotional way that can take advantage of the market's mood swings. Ben Graham taught us these lessons in the 1930s and the principles still hold as well today as when he first wrote them down more than 70 years ago.
Do you think individual investors should re-think their investment strategy as a result of the recent market crash and recession?
I think the best lesson that can be learned from the recent price drop and partial recovery is that stocks are volatile. For most people, stocks should represent a portion of their investment portfolio because I still believe that over the long term they will provide superior returns relative to most alternative investments. However, whether that portion of an investment portfolio devoted to stock investments should be 40% of an investor's portfolio or 80% is a very individual decision. How much are you willing (or able) to lose before you panic out? There's no sense investing such a large portion of your assets in a long-term strategy if you can't take the pain when your chosen strategy doesn't work out for a period of years. The "magic formula" found in the book can underperform the market for years. It can also lose money if the market goes down. But it is also a strategy that makes a lot of sense and that should work well for investors over the long term.
Can you explain the Magic Formula's basic strategy in one sentence?
The Magic Formula strategy is a long-term investment strategy designed to help investors buy a group of above-average companies but only when they are available at below-average prices.
You make reference in the new afterword to receiving a number of emails from readers after the The Little Book That Beats the Market was published. Could you share with us some of the comments you received?
I received many emails after the first edition of the book was published. Some suggested that the strategy was working great for them while others reported that they had waited over a year and the strategy was underperforming. These results and emails are consistent with the message of the book. Over the five years since the book was published, the strategy earned very nice returns for investors, but the ride was bumpy. Not only did the formula underperform for a period of time, in 2008 it lost money along with the market. Overall, the formula performed quite well but only for those who maintained a true long-term perspective. This is easier said than done. In the new afterword, I try to give more facts, color and information about the strategy that I hope will help investors be successful in taking full advantage of the magic formula over the long term. Of course, I also got plenty of emails where investors just asked us to do it all for them. Other emails asked us to apply the formula internationally. As a result, we have worked on both of these projects over the last several years.
In the new afterword, you write "Beating the market isn't the same thing as making money." Can you elaborate on this and why it's a difficult concept to swallow at times?
Since the strategy involves buying a portfolio that is 100% long the stock market, if the stock market goes down, our portfolio may well go down, too. If the market drops 40% and we beat the market by losing only 38%, this is small consolation. As I say in the afterword, while I firmly believe that for most people an investment in the stock market should represent a substantial portion of your investment portfolio, how big that portion should be can vary widely. For some it can be well over half of assets, for others well less than half might be appropriate. The magic formula strategy is a wonderful strategy for that portion of your portfolio that you choose to invest in the stock market. In fact, I truly believe that the magic formula remains one of your best options. How much to invest in the stock market, however, is a very personal decision that should be partially based on your ability to withstand short-term negative price movements. One encouraging fact, though, discussed in the afterword is the performance of our large cap portfolio over the last decade. Over that period, the market as measured by the S&P 500 was actually down, yet our backtests showed that following the formula over those same ten years would have resulted in a more than tripling of your money. Unfortunately, those great long-term returns came with plenty of bumps, including some not so short periods of losses and underperformance. But once again, if the formula worked every day, every month and every year, everyone would follow it and it would be ruined. Fortunately, it's not so great, and as a result I strongly believe that long-term investors should continue to benefit from the magic formula for many years to come.
From the Inside Flap
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 sixth-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 six to fifteen. They are in luck. His Little Book is one of the best, clearest guides to value investing out there."
From the Back Cover
"Simply perfect. One of the most important investment books of the last 50 years!"
―Michael Price
"A landmark book―a stunningly simple and low-risk way to significantly beat the market!"
―Michael Steinhardt, the Dean of Wall Street hedge fund managers
"This book is the finest simple distillation of modern value investing principles ever written. It should be mandatory reading for all serious investorsfrom the fourth grade on up."
―Professor Bruce Greenwald, Director of the Heilbrunn Center for Graham and Dodd Investing, Columbia Business School
"The book unquestionably makes good on its promises."
―SmartMoney
"Greenblatt delivers admirably . . . it contains one of the clearest, most entertaining explanations you'll ever see of the ideas underlying value investing."
―International Herald Tribune
About the Author
Joel Greenblatt is the founder and a managing partner of Gotham Capital, a private investment partnership that has achieved 40% annualized returns since its inception in 1985. He is a professor on the adjunct faculty of Columbia Business School, the former chairman of the board of a Fortune 500 company, the cofounder of ValueInvestorsClub.com, and the author of You Can Be a Stock Market Genius. Greenblatt holds a BS and an MBA from the Wharton School.
From AudioFile
Product details
- ASIN : B003VWCQB0
- Publisher : Wiley; 1st edition (July 16, 2010)
- Publication date : July 16, 2010
- Language : English
- File size : 884 KB
- Text-to-Speech : Enabled
- Screen Reader : Supported
- Enhanced typesetting : Enabled
- X-Ray : Enabled
- Word Wise : Enabled
- Sticky notes : On Kindle Scribe
- Print length : 146 pages
- Best Sellers Rank: #208,527 in Kindle Store (See Top 100 in Kindle Store)
- #77 in Commodities Trading (Books)
- #98 in Investing Basics
- #121 in Finance (Kindle Store)
- Customer Reviews:
About the author
Joel Greenblatt is the founder and a managing partner of Gotham Capital, a private investment partnership that has achieved 40% annualized returns since its inception in 1985. He is a professor on the adjunct faculty of Columbia Business School, the former chairman of the board of a Fortune 500 company, the cofounder of the Value Investors Club website, and the author of You Can Be a Stock Market Genius. Greenblatt holds a BS and an MBA from the Wharton School.
Customer reviews
Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.
To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzed reviews to verify trustworthiness.
Learn more how customers reviews work on AmazonCustomers say
Customers find the book's content valuable, easy to understand, and performs well over time. They also describe the humor as funny, kind, and humble. Readers describe the book as great to read, with well-explained complex concepts and a sound, profitable simple formula.
AI-generated from the text of customer reviews
Customers find the book well-explained, easy to read, and a good beginner's guide. They appreciate the statistical simplicity, excellent examples, and sound and profitable simple formula. They also mention that the author makes good points about value investing.
"...required to implement his exact system but the fundamental ideas are very clearly explained." Read more
"...This book was an easy read in common layman terms. It helped me understand what indicators to look for even if I did not use the magic formula...." Read more
"...The writing style is clear and simple...." Read more
"...The examples are excellent, albeit simplistic...but that's exactly the point...." Read more
Customers find the book's content valuable, good for investors, and helpful for middle-aged people. They say it covers some basics and explains how markets work well. Customers also say it serves its purpose well and does not require prior investing knowledge.
"...The book does not require any prior investing knowledge and actually expects you to not know anything and still be able to make excellent returns...." Read more
"Probably the easiest investing strategy. Joel even built a website for you...." Read more
"This book contains a tested systematic approach to stock market investing that most people can implement on their own...." Read more
"This is an excellent book to share with younger investors, or for newbies that want to understand how stock shares are priced...." Read more
Customers find the book entertaining and a great read about value investing.
"This book is great, I have been investing for a while and was always looking for growth stocks etc...." Read more
"...Don't let the size or the title of the book fool you, this is an amazing book. Highly recommend it." Read more
"The "Little Book That Beats the Market" is a short, digestible book that outlines Joel Greenblatt's "magical formula investing" theory...." Read more
"This little book is phenomenal! It really simplifies the process of value investing by describing a system that the author calls the Magic Formula...." Read more
Customers find the book funny and engaging. They also mention that it's educational and informative.
"...also liked how the book was very enjoyable to read and written in engaging humorous language...." Read more
"...Still, entertaining read and some good educational material on how stock markets etc work." Read more
"...And more, this book is written with humor, so anybody, even children will enjoy it very much...." Read more
"The Good: Its a short entertaining book that you can finish in a few days of casual reading...." Read more
Customers find the book short, concise, and not long or complicated.
"The "Little Book That Beats the Market" is a short, digestible book that outlines Joel Greenblatt's "magical formula investing" theory...." Read more
"...The book is super short. Took me just a few hours to read. It's also super cheesy...." Read more
"...The cost is a pittance relative to the gains one might expect, it's short, it's clear, and (unlike most investing books) it's actually an enjoyable..." Read more
"It’s funny, it’s short, it’s very readable (unlike so many other books on this topic) and it covers most important points...." Read more
Customers find the writing style down to earth, smooth, and humble. They also say the author is successful, kind, and an inspiration.
"...chapter 6 I was laughing out loud, at the statistical simplicity, shear elegance, and ironic effectiveness of this investment approach...." Read more
"...The hardcover print has a beautifully designed illuminate cover. Check it out!" Read more
"...The book is super short. Took me just a few hours to read. It's also super cheesy...." Read more
"...I aspire to become just like the author. Successful, kind, and humble. What an inspiration! and Yes the book does offer great investment knowledge!" Read more
Reviews with images
-
Top reviews
Top reviews from the United States
There was a problem filtering reviews right now. Please try again later.
The book does not require any prior investing knowledge and actually expects you to not know anything and still be able to make excellent returns. There is however an element of belief required to implement his exact system but the fundamental ideas are very clearly explained.
It is not perfect one but I got some basic knowledge how to invest wisely by checking the fundamental data of the stocks.
As I write this review, there are already 266 reviews of Joel Greenblatt's "The Little Book..." on Amazon. Why bother? One reason is that since first published in 2005, Greenblatt's investment accomplishments have become even more widely appreciated, giving added credibility to his advice. For example, he is featured as one of the "Hedge Fund Market Wizards" in Jack Schwager's recently published book of the same name Hedge Fund Market Wizards (please see my review of that book). Additionally, at present returns on traditional savings accounts are very close to zero and the US Treasury Note yields a mere 1.7 percent. Any of us who envisioned living in retirement from the interest on our savings were sadly mistaken. Greenblatt's investment system as presented in this book may be one of very few, or the only, approach that is likely to generate low-risk investment results that might really help savers and seniors meet their previous expectations.
The writing style is clear and simple. The author explains investment terms like return on capital and earnings yield in a conversational tone without condescention. He uses a couple of example fantasy businesses in an entertaining manner to illustrate the concepts. As the book progresses, he uses these basic examples as the foundation for more advanced concepts (not complex, but necessary). Necessary for what? For the reader to believe in the investment system that Greenblatt presents in the book to a degree that the reader will stick to the system without variance for a period of years in order to enjoy the benefits that accrue to long-term investors (think Buffett, Rogers, Graham, Bogle, Templeton).
I urge you to read the book review by "Value Investor" on these pages. He lays out the reasons why this system is very likely to perform well over a period of years. In a nutshell, it is likely to work because the author has done extensive testing of the system, uses it as the basis for his own hedge fund's portfolio management, and because it takes considerable patience and fortitude to follow (traits not found in excess on Wall Street).
One aspect that I really appreciate is the author's willingness to concede that many investors want a higher degree of involvement in selecting the stocks for their portfolios. They may be uncomfortable following a more mechanical system. He addresses this issue by giving clear guidance on how one may still follow the system even with the addition of an element of personal discretion, depending on the investor's level of expertise, time commitment and available capital.
Finally, the author maintains a free website (now for 7+ years) to aid investors with portfolio selection. This is a high value service in my opinion.
I highly recommend this book to any saver or investor, or speculator or trader for that matter, who wishes to increase their returns on investment and improve their overall portfolio performance. Five stars.
The nice part about the book is that, having followed the explanation and wanting to try it out, one quickly realizes that the ranking process takes a LOT of work. The good news is the author runs a website, accessible to bona fide purchasers of his book at no cost, that provides the rankings. It couldn't be easier.
The bad news is that the results are only so-so. I'm sure the author has GIPS data to back up his claims of beating the market, and perhaps he cherry picks the data to support his thesis, but the American Association of Individual Investors, which runs 75 stock screens which are updated monthly using real market data, find his Magic Formula stock screen to have yielded a mere 0.7% return over ten years. Several other "value" screens have yielded well above 10% over the same time frame.
So, enjoy the book but consider other, more reliable, stock screens if you're a value investor. (And, if you want better returns, stick to growth investing.)
Top reviews from other countries
Greenblatt, gestor de fundo de sucesso, professor universitário, após anos de experiência no mercado financeiro, desenvolveu uma fórmula, a qual denominou "Fórmula Mágica", para selecionar ações de boas empresas a preços baixos. Sua intenção era criar um livro que pudesse ler lido e entendido pelos seus filhos (pequenos na época) e também, por qualquer pessoa, leiga ou não, sobre o mercado financeiro.
Basicamente sua fórmula busca empresas que tenham ótimos rendimentos, quando comparados ao preço da ação, e que consigam gerar mais retornos sobre o capital investido. É uma fórmula que segue os princípios dos grandes investidores fundamentalistas, dentre eles o mais famoso Benjamin Graham.
Através de um longo backtest, Joel prova que a formula mágica performa muito melhor do que algumas outras estratégias e índices de ações. Mesmo em épocas ruins, uma carteira de ações escolhidas pela fórmula conseguiu garantir menos perdas, ou até retornos positivos (enquanto o mercado despenca!). Toda essa "magia" da fórmula tem um motivo: seu conceito é atemporal. A formula apenas olha para empresas que estão performando bem mesmo sendo subavaliadas pelo mercado. Ou seja, ela aponta por boas oportunidades. Porém Greenblatt ressalta que a formula não é infalível e que precisa ser considerada em um horizonte de longo prazo. Só assim poderá ter tempo suficiente para que as empresas descontem e entreguem resultados superiores.
Eu já tive bons retornos seguindo a formula do Greenblatt. Esse ano de 2019 consegui garantir uma boa rentabilidade graças a umas ações que escolhi com base nessa fórmula!
Leitura obrigatória esse livro ein!
Muito bom!