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The Little Book That Still Beats the Market

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The Little Book That Still Beats the Market

By: Joel Greenblatt
Narrated by: Adam Grupper
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About this listen

In 2005, Joel Greenblatt published a book that is already considered one of the classics of finance literature. In The Little Book that Beats the Market—a New York Times best seller with 300,000 copies in print—Greenblatt explained 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. Now, with a new Introduction and Afterword for 2010, The Little Book that Still Beats the Market updates and expands upon the research findings from the original book. Included are data and analysis covering the recent financial crisis and model performance through the end of 2009.

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. Greenblatt will take listeners 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.

©2010 Joel Greenblatt (P)2010 Simon and Schuster Audio
Business & Careers Investing & Trading Personal Finance Business Stock Market
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Critic reviews

"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.” ( The Wall Street Journal)

What listeners say about The Little Book That Still Beats the Market

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  • Overall
    4 out of 5 stars
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    4 out of 5 stars

Very good introduction to value investing

If you could sum up The Little Book That Still Beats the Market in three words, what would they be?

Book is about value investing with formula to rank most valuable stocks. Full rules are revealed unfortunately I have not found free data that can be used to apply and backtest method from this book.

What other book might you compare The Little Book That Still Beats the Market to, and why?

It compares with other value investing books. But formula is easy to apply for any individual investor. It clearly shows one easy way to pick value stocks.

Which character – as performed by Adam Grupper – was your favourite?

Not adequate.

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    5 out of 5 stars
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    5 out of 5 stars

Oh yes!!! This is the one

Oh yes!!! This is the one
You’ve just got to get this book and follow through.
If you’ve never believed in anything before, you will, just don’t be afraid and see it through even if you just make it to 3 years.
No need for good luck, the luck is done for you, so in advance, well done you’re in the game (money).

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  • Overall
    4 out of 5 stars
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    5 out of 5 stars

Fun, punchy, and deceptively useful

There is a lot of insight here. Even if you do not go with the exact method, and even if your skeptical of “The Formula” — which is indeed empirical and useful.

The discussions on the return to capital and value were clear. The arguments against over diversification were also compelling.

I think this is a broadly useful book for someone who is thoughtful and has a proven record.

The name may turn people off, but there is substance there. And arguments that transcend the formula itself.

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  • Overall
    4 out of 5 stars
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    4 out of 5 stars

Great introductory book but I need more!

Very intriguing. Makes sense. Though he doesn't explain what standard checks one should do when looking at your top ranked companies. Surely some sort of filter should be applied? I read on the wikipedia page that financial and energy firms should be removed but this is not mentioned in the book. Also, no explanation is given for why the formula would not work in international markets (e.g. The UK?). Must be an accounting rule but would be helpful to know which one. And finally, no discussion on transaction costs and a recommended starting balance to spread these.

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Well written book

loved the way the author explained everything in simple words for beginners. Most if the things explained made sense in the world of investing.

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A good book that keeps it interesting

Good book kepts it fun to listen to when explaining good facts and even may get a younger person to think more about finance and stocks 👍

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    4 out of 5 stars

Good book

Greenblatt is a superb value investor. The magic formula is not the pinnacle of good value investing but it is a better option than an index fund or most active funds for most investors. There are also good lessons in the book for everyone.

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Value stock picking 101

Must read. Compelling, engaging, easy to understand and funny/silly, this Little Book is a great read, and will prepare you to Beat the Market.

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long term strategy

the book quality was overall good and well presented but it.felt like a sales pitch for the magic formula. the fundamentals seem sound.

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2 people found this helpful

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    4 out of 5 stars

One of the best stock investment books

Loved the book from both content and narration points of view.

The book provides a basic understanding of stock investment in an easy to understand manner before introduction and explanation of the 'magic formula', with the author providing information on the benefits and flaws of the formula (based on extensive research over a number of years) and how to best to get market-beating return using the formula.

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2 people found this helpful