The Little Book That Beats the Market (Little Book, Big Profits)
by Joel Greenblatt
List Price:
Our Price: $8.75
You Save: $11.20 (56%)
Availability: Usually ships in 1-2 business days
Buy Used: from $6.54 (click here)
Category: Book
See more book details and other editions
Book Summary Information
Author: Joel GreenblattEdition: Hardcover
Published: 2005-11-19
ISBN: 0471733067
Number of pages: 176
Publisher: Wiley
Accessories:
- The Little Book of Value Investing (Little Book, Big Profits)
- The Little Book That Makes You Rich: A Proven Market-Beating Formula for Growth Investing (Little Book, Big Profits)
- The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Book, Big Profits)
Book Reviews of The Little Book That Beats the Market (Little Book, Big Profits)
Book Review: Reviewers need a lesson in reading comprehension
Summary: 2 Stars
I read every chapter of this book while at Borders except the last one, so I cannot vouch for the effectiveness of the "Magic Formula" website that seems to generate so much controversy. I can, however, clarify a glaring misconception in what Goldblatt wrote in his book.
Contrary to what many of the reviewers wrote (especially the negative reviewers), Goldblatt was not insisting that people focus only on Return on Assets and P/E ratio. Goldblatt was also not insisting on a definition of "capital" (within his concept of "return on capital")that leads to an over-emphasis on services over manufacturing. He illustrated perfectly his two pieces of investment data in the following ways:
First, Return on Capital can be best interpreted as a return on invested capital. If it costs $1 million to build a retail store and that store, within a year, generates $2 million, then the ROC is 100%.
Second, his other measure is really a profit-yield per share. You get this measure by taking the amount of profit generated by a firm, dividing it by the number of shares outstanding, and then dividing that by the share price times 100. So, if a company has a $1 million profit and it's selling a million shares for $10 a share, then the profit-yield per share is 10%.
These two concepts seem to form the core of value investing in that they discipline a person to invest in the market as if they were buying a business or a partnership share in the business. The relevant question in any such investment is always "how much will my partnership share make?"
All other factors are just risk management.
The trick is finding data to generate these statistics. I don't know how well Goldblatt's website does that.
Summary of The Little Book That Beats the Market (Little Book, Big Profits)
Two years in MBA school won't teach you how to double the market's return. Two hours with The Little Book That Beats the Market will.In The Little Book, Joel Greenblatt, Founder and Managing Partner at Gotham Capital (with average annualized returns of 40 0.000000or over 20 years), does more than simply set out the basic principles for successful stock market investing. He provides a "magic formula" that is easy to use and makes buying good companies at bargain 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. You'll learn how to use this low risk method to beat the market and professional managers by a wide margin. You'll also learn how to view the stock market, why success eludes almost all individual and professional investors, and why the formula will continue to work even after everyone "knows" it.
Two years in MBA school won't teach you how to double the market's return. Two hours with The Little Book That Beats the Market will. Let Joel Greenblatt, Founder and Managing Partner at Gotham Capital (with average annualized returns of 40% for over 20 years) show you how ""beating the market"" can be made simple and easy. The Little Book does more than simply set out the basic principles for successful stock market investing, it provides a ""magic formula"" that is easy to use and makes buying good companies at bargain prices automatic. Though the formula has been extensively tested and is a clear breakthrough in the academic and professional world, the common sense method is convincingly explained using 6th grade math skills, plain language and humor. Readers will learn how to use this low risk method to beat the market and professional managers by a wide margin. Along the way, readers will also learn: how to view the stock market; why success eludes almost all individual and professional investors; and why the formula will continue to work even after everyone ""knows"" it.
General Books
Book Subjects
- Arts & Photography
- Audiobooks on Cassette
- Audiobooks on CD
- Biographies & Memoirs
- Business & Investing
- Children's Books
- Comics & Graphic Novels
- Computers & Internet
- Cooking, Food & Wine
- e-Books
- Engineering
- Entertainment
- Gay & Lesbian
- Health, Mind & Body
- History
- Home & Garden
- Horror
- Law
- Literature & Fiction
- Medicine
- Mystery & Thrillers
- Nonfiction
- Outdoors & Nature
- Parenting & Families
- Professional & Technical
- Reference
- Religion & Spirituality
- Romance
- Science
- Science Fiction & Fantasy
- Sports
- Teens
- Travel
Most talked about in Where Should I Put My Money
Trading for Dummiesby Michael Griffis, Lita, MBA Epstein
For Dummies; Published: 2004-08-27; Paperback; Book
Best price: $8.10
Price in other shops:
Rich Dad Poor Dad: What the Rich Teach Their Kids about Money?that the Poor and the Middle Class Do Not! (Rich Dad's)by Sharon L. Lechter
Hachette Audio; Published: 2001-03-01; Audio CD; Book
Best price: $8.96
Price in other shops:
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)by Benjamin Graham, Jason Zweig
HarperBusiness Essentials; Published: 2003-07-01; Paperback; Book
Best price: $9.98
Price in other shops:
Options Made Easy: Your Guide to Profitable Trading (2nd Edition)by Guy Cohen
FT Press; Published: 2005-07-28; Hardcover; Book
Best price: $16.98
Price in other shops:
Series 7 Exam For Dummies (For Dummies (Career/ Education))by Steven M. Rice
For Dummies; Published: 2007-04-09; Paperback; Book
Best price: $13.30
Price in other shops:
The Little Book That Makes You Rich: A Proven Market-Beating Formula for Growth Investing (Little Books. Big Profits)by Louis Navellier
Wiley; Published: 2007-10-05; Hardcover; Book
Best price: $9.15
Price in other shops:
Be a Real Estate Millionaire: Secret Strategies To Lifetime Wealth Todayby Dean Graziosi
Vanguard Press; Published: 2007-09-25; Hardcover; Book
Best price: $14.81
Price in other shops:
The Little Book That Beats the Market (Little Books. Big Profits)by Joel Greenblatt
Wiley; Published: 2005-11-19; Hardcover; Book
Best price: $8.50
Price in other shops:
Rich Woman: A Book on Investing for Women - Because I Hate Being Told What to Do!by Kim Kiyosaki
Rich Press; Published: 2006-05-01; Paperback; Book
Best price: $7.68
Price in other shops:
A Beginner's Guide to Day Trading Online (2nd edition)by Toni Turner
Adams Media; Published: 2007-01-19; Paperback; Book
Best price: $9.40
Price in other shops:
Similar Books and other products
One Up On Wall Street : How To Use What You Already Know To Make Money In The Marketby Peter Lynch
Simon & Schuster; Published: 2000-04-03; Paperback; Book
Best price: $5.61
Price in other shops:
The Essays of Warren Buffett : Lessons for Corporate Americaby Warren E. Buffett
The Cunningham Group; Published: 2001-04-11; Paperback; Book
Best price: $22.50
Price in other shops:
Common Stocks and Uncommon Profits and Other Writings (Wiley Investment Classics)by Philip A. Fisher
Wiley; Published: 2003-09-04; Paperback; Book
Best price: $11.13
Price in other shops:
Intelligent Investor: A Book of Practical Counselby Benjamin Graham, Jason Zweig
HARPER COLLINS TRADE DIVISION; Published: 2003-07-01; Paperback; Book
Best price: $13.72
Price in other shops:
Value Investing: From Graham to Buffett and Beyond (Wiley Finance)by Bruce C. N. Greenwald, Judd Kahn, Paul D. Sonkin, Michael van Biema
Wiley; Published: 2004-01-26; Paperback; Book
Best price: $11.13
Price in other shops:
The Little Book That Makes You Rich: A Proven Market-Beating Formula for Growth Investing (Little Book, Big Profits)by Louis Navellier
Wiley; Published: 2007-10-05; Hardcover; Book
Best price: $7.25
Price in other shops:
The Dhandho Investor: The Low - Risk Value Method to High Returnsby Mohnish Pabrai
Wiley; Published: 2007-04-06; Hardcover; Book
Best price: $14.86
Price in other shops:
The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Book, Big Profits)by John C. Bogle
Wiley; Published: 2007-03-05; Hardcover; Book
Best price: $10.96
Price in other shops:
You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profitsby Joel Greenblatt
Fireside; Published: 1999-02-25; Paperback; Book
Best price: $8.42
Price in other shops:
The Little Book of Value Investing (Little Book, Big Profits)by Christopher H. Browne
Wiley; Published: 2006-09-22; Hardcover; Book
Best price: $10.98
Price in other shops: