Chuck Sears Joel Greenblatt’s The Little Book That Beats the Market simplifies stock market investing with a “magic formula.” This formula focuses on two metrics: earnings yield and return on invested capital. Greenblatt explains how to identify undervalued companies with strong performance and emphasizes buying good businesses at fair prices. He encourages investors to diversify by purchasing 20-30 stocks and rebalancing annually.
The book highlights common mistakes investors make, such as chasing trends and reacting emotionally to market volatility. Greenblatt’s approach empowers readers to outperform the market with patience and discipline The Little Book That Beats the Market is a must-read for anyone hoping to improve their stock market knowledge.
You can visit the Magic Formula Investing website at https://magicformulainvesting.com to find out more about the Magic Formula and how to use it.
The book or audio version of Joel Greenblatt’s The Little Book That Beats the Market is available here.
