The Little Book That Still Beats the Market
by Joel Greenblatt
Greenblatt's 'magic formula': rank companies by earnings yield and return on capital, buy the top ranks, hold a year, repeat. He explains value investing so simply a child can follow, and warns that the formula underperforms for years at a time, which is why it keeps working. Short, funny and honest about the hard part: sticking with it.
Read it if…
you want value investing explained from first principles in two hours.
Skip it if…
you cannot stomach years of underperformance; the formula requires it.
Three things you will actually use
- Buy good companies at bargain prices.
- The formula works because it is hard to stick with.
- Patience is the edge.
Do this first
Read the explanation of earnings yield and return on capital until you can explain both to a friend.
Our verdict
Short, clear and honest.
Compare with other Money books
The Essays of Warren Buffett
Warren E. Buffett, edited by Lawrence A. Cunningham · Money
Buffett, organized and in his own voice.
CLICK TO SEEBrowse all Money book reviews or get the free Reality Code Cheat Sheet.
As an Amazon Associate, WisdomDeck earns from qualifying purchases. Links marked “Click to see” go to Amazon. We are not paid for opinions, prices and availability are not shown here and change on Amazon, and we never see your purchase details. Nothing here is medical, legal or financial advice.