If someone told you that there is a magic formula with which to have a long-term profitability capable of beating the market with low risk, surely you would think that it is too beautiful to be true. However, the book that I will analyze below explains a simple and logical method of beating the market in a consistent and proven way, also based on the principles of value investing. In this article I will give you my opinion of "the little book that beats the market" by the prestigious investor Joel Greenblatt.
Technical sheet of the little book that beats the market
- Title: The little book that beats the market. Discover the most profitable formula to invest in the stock market.
- Authors: Joel Greenblatt
- Editorial: FOR) with a high return on invested capital. It seems a simplistic method, but as you will see in the book it has been very effective and consistent over time. The investment system using the magic formula is not only very profitable, but it is also logical, simple and low risk.
The best thing about the book is that it not only explains the magic formula, but also the reasons why it works and why it continues to work over time.
Apart from the magic formula, the book deals with other important topics such as the importance of saving, the allegory of Mr. Market, the entrepreneurial investor mentality or the concept of intrinsic value of an action. These topics are not covered in depth, but they help to better understand the philosophy behind value investing.
To finish, I leave you with this phrase by Joel Greenblatt that, without a doubt, is one of my favorites about the investment world:
“Choosing specific actions without having a clue of what we are looking for is like running through a dynamite factory with a lit match in hand. You may get out alive, but you'll still be an idiot. "
Valuation of "the little book that beats the market"
The little book that beats the market is simple, effective, and highly instructive. The little book that beats the market is a classic that should not be missing in the libraries of any value investor and therefore is part of my section on Recommended books to learn to invest in the stock market.
- Score: 8
- Level: Beginners
- Recommended to: Investors who want to know an easy and effective method that helps beat the market in the long term.
Buy it at Amazon