THE LITTLE BOOK THAT BEATS THE MARKET (BY JOEL GREENBLATT)

The Swedish Investor

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74万回視聴・ 20423いいね・ 2019/07/13

THE LITTLE BOOK THAT BEATS THE MARKET (BY JOEL GREENBLATT)

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This is my summary of Joel Greenblatt – founder and managing partner at Gotham Capital/inventor of “The Magic Formula” – and his book: The Little Book That Beats the Market.

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My main tool for fundamental screening and analysis of stocks: app.tikr.com/register?ref=tsi
(If you sign up I earn a small commission)

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Top 5 takeaways from Joel Greenblatt’s The Little Book that Beats the Market:
0:00 Intro
01:08 1. The Madness of the Markets
02:57 2. How Much is a Business Worth?
05:14 3. PE and Roa
08:29 4. The Magic Formula
10:23 5. Step-By-Step Instructions

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TL;DW:
Market prices fluctuate more than underlying business values
It’s difficult to estimate the future earnings of a company, and therefore also what a fair price of the company would be. Most investors have no business doing this.
PE and RoA are two of the most, if not the most, important quantitative factors to consider when buying stocks
According to The Magic Formula, If you buy stocks with a low PE and a high RoA, you will outperform the market by a wide margin over time
Go to magicformulainvesting.com and get started!

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