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The Little Book That Beats The Market: 2 Minutes Summary

1 SENTENCE SUMMARY: This inspiring book provides an accessible and proven strategy for anyone to invest and make money in the stock market with empathy and insight.

“The best investors are the ones who are always learning, always questioning and always challenging themselves.”

Quick Info

The Little Book That Beats The Market by Joel Greenblatt Cover
The Little Book That Beats The Market by Joel Greenblatt
Category: Personal Finance
Publish Date: 2010-09-07
# Pages: 208
ISBN: 0471733067

Where to Get It:
Buy on Amazon
Listen on Audible
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The Little Book That Beats The Market by Joel Greenblatt is a comprehensive guide to investing.

It provides readers with a straightforward and accessible approach to value investing.

Greenblatt offers a clear and simple explanation of the factors that drive stock prices, as well as easy-to-follow strategies for selecting and managing investments.

He also provides an in-depth analysis of the market, including an overview of the different types of investment strategies and how to choose the ones that best suit a particular investor.

With this book, Greenblatt shows readers how to beat the market using a value-oriented approach.

4 Key Lessons from The Little Book That Beats The Market by Joel Greenblatt

1. Investing is Simple, But Not Easy

Investing can be simple, but it is not easy.

Joel Greenblatt explains that investing is simple because it only requires understanding a few basic principles, such as the importance of buying stocks at a discount to their intrinsic value.

However, it is not easy because it requires discipline and a long-term approach.

Investors must be patient and disciplined in order to stick to their investment strategies and achieve their goals.

2. Focus on the Magic Formula

Greenblatt introduces the “magic formula” which is a simple but powerful way to invest.

It is a two-step process that involves finding stocks that are trading at a discount to their intrinsic value and then weighting them according to their quality rating.

By following this formula, investors can find stocks that are undervalued and will have a higher potential for returns.

3. Avoid the Crowd

Greenblatt emphasizes the importance of avoiding the crowd and taking an independent approach to investing.

He explains that by avoiding popular stocks, investors can avoid the risks of buying overvalued stocks and can potentially find better opportunities to invest in undervalued stocks.

4. Invest for the Long Term

Greenblatt emphasizes the importance of investing for the long term and avoiding the temptation to speculate.

He explains that by taking a long-term approach to investing, investors can reduce their risk and increase their potential returns.

He also points out that investors should focus on investing in quality companies and not try to time the market.

Who Should Read It

is an excellent read for anyone interested in investing in stocks, specifically value investing.

It is especially recommended for beginner investors who want to learn more about this type of investment strategy.

Where to Get It

If you love the smell and the feel of a physical book, you can just click on the button below:

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About Joel Greenblatt

Author Joel Greenblatt Joel Greenblatt is an American hedge fund manager and investor, as well as a professor at Columbia Business School.

He is the founder and Managing Partner of Gotham Asset Management and the author of several books on finance and investing, including The Little Book That Beats The Market.

In 2011, The Little Book That Beats The Market was the third bestselling finance book of the year, and has been praised by prominent investors such as Warren Buffett, who called it a “great book.”

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