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The Little Book That Beats the Market by Joel Greenblatt
The Little Book That Beats the Market by Joel Greenblatt
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The Little Book That Beats the Market
by Joel Greenblatt | Foreword by Andrew Tobias
📈 RULE-BASED INVESTING & ACADEMIC ALPHA
A breakthrough in empirical finance that proves a simple, disciplined "magic formula" can consistently outperform market averages and professional fund managers.
Extended Synopsis
In The Little Book That Beats the Market, Joel Greenblatt, the visionary founder of Gotham Capital, distills decades of institutional-grade investment expertise into a singular, repeatable system. Greenblatt argues that two years in an MBA program often fail to provide the practical tools required to outperform the market, whereas his "magic formula" provides a mathematically grounded path to doing exactly that. By utilizing basic principles of value investing, the formula automates the process of identifying "good businesses" (high return on capital) trading at "bargain prices" (high earnings yield).
The text demystifies the psychological barriers that prevent most individual and professional investors from achieving superior returns. Greenblatt’s low-risk method has been extensively back-tested and validated within both academic and professional spheres, yet it is explained with remarkable clarity. The book serves as a foundational text for understanding market efficiency, the persistence of value premiums, and why systematic discipline often triumphs over discretionary forecasting.
Author Biography
Joel Greenblatt is the Founder and Managing Partner of Gotham Capital, which achieved average annualized returns of 40% for over 20 years. He is an adjunct professor at Columbia Business School and the author of several finance classics. Andrew Tobias is a renowned financial journalist and the author of The Only Investment Guide You'll Ever Need.
Reader Targeting
- MBA Students & Educators: Individuals seeking a practical application of Return on Capital and Earnings Yield metrics.
- Systematic Investors: Readers who prefer rule-based, objective frameworks over subjective market speculation.
- Bust Down Community: Entrepreneurs and finance enthusiasts looking to build a robust foundation for long-term wealth accumulation.
Accolades & Awards
- Ranked among the TOP 40 Bestselling Books in Finance globally.
- A foundational volume in the prestigious Little Books. Big Profits. series.
- Acclaimed for achieving institutional-level returns through a method accessible to 6th-grade mathematics.
Product Specifications
| ISBN-13: | 9780471733065 |
| ISBN-10: | 0471733067 |
| Publisher: | Wiley |
| Format: | Hardcover |
| Publication Date: | 2005-11-28 |
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