A review by andredias
The Little Book That Still Beats the Market by Joel Greenblatt

informative medium-paced

3.5

 

"The Little Book That Still Beats the Market" by Joel Greenblatt is a compact yet powerful guide that introduces readers to an approachable and effective investment strategy. Greenblatt outlines his "Magic Formula," a straightforward method for selecting stocks based on their earning yield and return on capital. The book distills complex financial concepts into a simple and actionable framework, making it accessible for both novice and experienced investors.

Greenblatt's writing is engaging and filled with real-world examples, providing readers with a practical understanding of the Magic Formula's application. He emphasizes the importance of a long-term perspective, patience, and discipline in the face of market fluctuations.

One of the book's strengths is its ability to bridge the gap between theory and practice, offering readers a clear roadmap for implementing the Magic Formula in their investment decisions. While the strategy is not a guaranteed path to wealth, Greenblatt's insights and transparent approach provide valuable tools for individuals seeking a systematic and rational approach to stock investing.

"The Little Book That Still Beats the Market" remains relevant as a concise and effective guide to value investing, showcasing Greenblatt's expertise and dedication to demystifying the stock market for a wide audience.