The Little Book That Still Beats the Market Hardcover – Illustrated, 24 September 2010

If Ben Graham were around, he would have recommended this book as an embodiment of his thesis. What stands out is that Greenblatt is both an academician and a practitioner - and simultaneously successful at both. So, when he advises on buying above average businesses at below average prices, there cannot be a simpler yet more effective strategy where results are guaranteed.The book is written in the most simple way for the novice but magic formula's utility is for everyone. So,Investment Option for below average returns - Mutual Funds/ Hedge Funds (due to poor performance, and/or frictional costs)Investment Option for average returns - Index Investing (low frictional costs)Investment Option for above average returns - Long term Magic Formula Investing (buying above average businesses for below average prices)Patience is what will differentiate one Investor from another. Thanks Greenblatt.

The new entrant into the stock market is usually bombarded with so much information about buying good businesses cheap, holding for long term and selling high. But, if one follows the advice, either cheaply bought stocks remain cheap or good businesses never trade at cheap prices. Accidentally, if you take risk and buy a good business at a higher price, the market corrects and you end up losing.The author provides a simple, tested solution for the above problem. Take top 200-250 stocks. Rank them by earnings yield. Rank them separately by their return on capital. Combine these ranks to identify good companies which trade at not so high prices.The philosophy behind the process is same as that of value investing. To buy good businesses at bargain prices. But it solves the problem mentioned in the first.para.Book is written in an easy to.understand manner, with occasional humour. Recommended for novice investors.Negatives. Speaks in the American stock market context. Boring at some parts.

Simple language . Balanced narrative. Powerfully logical.As a relative newbie to investing in equities, I find this book exceptional. The most important part is the really convincing back tested data and the reasons why the method performed during certain periods and didn’t in relative shorter term.I would recommend this book to someone who is new to equity investing.To be honest, I didn’t completely understand everything when I read this first. Thankful this is a small book. When I read it second time, I grasped a few complicated sections in this book like short selling the low ranked stocks per magic formula. At least now I understand the concept.An understanding of terms in balance sheet would help but is not absolutely necessary.I live in an emerging market in Asia and I will surely test the validity of this formula.

Book is started with examples for beginners to understand on how the stock market operates and slowly getting into how to find right stocks to find.It is interesting to find the simple strategy which can implemented to find right stocks to stay invested for over a period of time. Also the website link to analyse practically.I started doing the analysis for Indian stocks with this idea in the backdrop and results were amazing in excel and planning to implement practically going forward.

The author has proposed a formula which has no theoretical basis, but he has supported by some empirical results. In world of AI and ML algos, the formula is too basic. Beginners can read this text others can give it a pass.

A basic yet simple understanding for long term investment in the US stock markets. Have to back test for Indian markets or find if someone has done it. The book also gives out the flaws of the magic formula which no big professional market advisor would do. Appreciate the honesty. It’s definitely a one time read and a simple formula for whoever wants to invest for long term 5+ years

The magical formula. Read it to know it

It's a well thought out and researched book about the historical aspects of the magic formula and it also builds conviction about the workings of the magic formula