FREE delivery: Dec 9 - 15
Fastest delivery: Dec 7 - 9
Only 1 left in stock - order soon.
As an alternative, the Kindle eBook is available now and can be read on any device with the free Kindle app.
$$40.29 () Includes selected options. Includes initial monthly payment and selected options. Details
Price
Subtotal
$$40.29
Subtotal
Initial payment breakdown
Shipping cost, delivery date, and order total (including tax) shown at checkout.
Your transaction is secure
We work hard to protect your security and privacy. Our payment security system encrypts your information during transmission. We don’t share your credit card details with third-party sellers, and we don’t sell your information to others. Learn more
Ships from
Kobamey
Sold by
Ships from
Kobamey
Sold by
Return policy: Returnable until Jan 31, 2022
For the 2021 holiday season, returnable items purchased between October 1 and December 31 can be returned until January 31, 2022. You may receive a partial or no refund on used, damaged or materially different returns.
Get Fast, Free Shipping with Amazon Prime
FREE delivery:
Get free shipping
Free shipping within the U.S. when you order $25.00 of eligible items shipped by Amazon.
Or get faster shipping on this item starting at $5.99 . (Prices may vary for AK and HI.)
Learn more about free shipping
Friday, Dec 10 on orders over $25.00 shipped by Amazon. Details
Used: Very Good | Details
Condition: Used: Very Good
Comment: SHIPS DIRECTLY FROM AMAZON! Book is in Very Good condition. No marking/underlining/highlighting in text block. Very minor shelf wear/corner wear.
<Embed>
Other Sellers on Amazon
$40.14
& FREE Shipping
Sold by: YourOnlineBookstore
Sold by: YourOnlineBookstore
(526635 ratings)
93% positive over last 12 months
Only 1 left in stock - order soon.
Shipping rates and Return policy
$40.34
& FREE Shipping
Sold by: MMAC10
Sold by: MMAC10
(123 ratings)
97% positive over last 12 months
Only 1 left in stock - order soon.
Shipping rates and Return policy
$43.99
& FREE Shipping. Details
Sold by: NILE BOOK STORE NBS
Sold by: NILE BOOK STORE NBS
(222 ratings)
88% positive over last 12 months
Only 1 left in stock - order soon.
Shipping rates and Return policy
Loading your book clubs
There was a problem loading your book clubs. Please try again.
Not in a club? Learn more
Amazon book clubs early access

Join or create book clubs

Choose books together

Track your books
Bring your club to Amazon Book Clubs, start a new book club and invite your friends to join, or find a club that’s right for you for free.

Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer - no Kindle device required. Learn more

Read instantly on your browser with Kindle Cloud Reader.

Using your mobile phone camera - scan the code below and download the Kindle app.

QR code to download the Kindle App

Enter your mobile phone or email address

Processing your request...

By pressing "Send link," you agree to Amazon's Conditions of Use.

You consent to receive an automated text message from or on behalf of Amazon about the Kindle App at your mobile number above. Consent is not a condition of any purchase. Message & data rates may apply.

Flip to back Flip to front
Listen Playing... Paused   You're listening to a sample of the Audible audio edition.
Learn more

Follow the Author

Something went wrong. Please try your request again later.


The Little Book That Beats the Market Hardcover – November 19, 2005

4.5 out of 5 stars 593 ratings

Price
New from Used from
Kindle
Hardcover
$40.29
$37.88 $1.98

Enhance your purchase


Give the gift of Audible
Put the joy of great stories at their fingertips. Learn more

Frequently bought together

  • The Little Book That Beats the Market
  • +
  • The Intelligent Investor Rev Ed.: The Definitive Book on Value Investing
  • +
  • One Up On Wall Street: How To Use What You Already Know To Make Money In The Market
Total price:
To see our price, add these items to your cart.
Some of these items ship sooner than the others.
Choose items to buy together.

Special offers and product promotions

  • Create your FREE Amazon Business account to save up to 10% with Business-only prices and free shipping.

Editorial Reviews

Amazon.com Review

An Exclusive Q&A with Author Joel Greenblatt

It's been five years since you first published The Little Book That Beats the Market. Have your thoughts changed at all about the effectiveness of value investing?

In my mind, the principles of value investing have not changed. As we've learned yet again, markets can be volatile and emotional. They often go to extremes of pessimism and optimism, and prices can and often do fluctuate wildly and significantly over short periods of time. As a result, Mr. Market can provide some excellent opportunities to purchase bargain priced stocks when people are unduly pessimistic. This is where value investing comes in. Buying companies below their true value is the road to being a successful investor. The magic formula found in the Little Book seeks to buy a group of above average companies but only when they are available at below average prices. Because it is a formula, it seeks to do this in an unemotional way that can take advantage of the market's mood swings. Ben Graham taught us these lessons in the 1930s and the principles still hold as well today as when he first wrote them down more than 70 years ago.

Do you think individual investors should re-think their investment strategy as a result of the recent market crash and recession?

I think the best lesson that can be learned from the recent price drop and partial recovery is that stocks are volatile. For most people, stocks should represent a portion of their investment portfolio because I still believe that over the long term they will provide superior returns relative to most alternative investments. However, whether that portion of an investment portfolio devoted to stock investments should be 40% of an investor's portfolio or 80% is a very individual decision. How much are you willing (or able) to lose before you panic out? There's no sense investing such a large portion of your assets in a long-term strategy if you can't take the pain when your chosen strategy doesn't work out for a period of years. The "magic formula" found in the book can underperform the market for years. It can also lose money if the market goes down. But it is also a strategy that makes a lot of sense and that should work well for investors over the long term.

Can you explain the Magic Formula's basic strategy in one sentence?

The Magic Formula strategy is a long-term investment strategy designed to help investors buy a group of above-average companies but only when they are available at below-average prices.

You make reference in the new afterword to receiving a number of emails from readers after the The Little Book That Beats the Market was published. Could you share with us some of the comments you received?

I received many emails after the first edition of the book was published. Some suggested that the strategy was working great for them while others reported that they had waited over a year and the strategy was underperforming. These results and emails are consistent with the message of the book. Over the five years since the book was published, the strategy earned very nice returns for investors, but the ride was bumpy. Not only did the formula underperform for a period of time, in 2008 it lost money along with the market. Overall, the formula performed quite well but only for those who maintained a true long-term perspective. This is easier said than done. In the new afterword, I try to give more facts, color and information about the strategy that I hope will help investors be successful in taking full advantage of the magic formula over the long term. Of course, I also got plenty of emails where investors just asked us to do it all for them. Other emails asked us to apply the formula internationally. As a result, we have worked on both of these projects over the last several years.

In the new afterword, you write "Beating the market isn't the same thing as making money." Can you elaborate on this and why it's a difficult concept to swallow at times?

Since the strategy involves buying a portfolio that is 100% long the stock market, if the stock market goes down, our portfolio may well go down, too. If the market drops 40% and we beat the market by losing only 38%, this is small consolation. As I say in the afterword, while I firmly believe that for most people an investment in the stock market should represent a substantial portion of your investment portfolio, how big that portion should be can vary widely. For some it can be well over half of assets, for others well less than half might be appropriate. The magic formula strategy is a wonderful strategy for that portion of your portfolio that you choose to invest in the stock market. In fact, I truly believe that the magic formula remains one of your best options. How much to invest in the stock market, however, is a very personal decision that should be partially based on your ability to withstand short-term negative price movements. One encouraging fact, though, discussed in the afterword is the performance of our large cap portfolio over the last decade. Over that period, the market as measured by the S&P 500 was actually down, yet our backtests showed that following the formula over those same ten years would have resulted in a more than tripling of your money. Unfortunately, those great long-term returns came with plenty of bumps, including some not so short periods of losses and underperformance. But once again, if the formula worked every day, every month and every year, everyone would follow it and it would be ruined. Fortunately, it's not so great, and as a result I strongly believe that long-term investors should continue to benefit from the magic formula for many years to come.

From Publishers Weekly

Contrary to efficient-market naysayers, this engaging investment primer contends that ordinary stock-market investors can indeed get better-than-market returns over the long haul. Greenblatt (You Can Be a Stock Market Genius), a Columbia Business School adjunct professor, touts a "value-oriented" approach that looks for bargain stocks whose share price is cheap relative to the company's profitability. His version is a "magic formula" that ranks stocks on the basis of two variables—the earnings yield and the business's return on capital. His Web site, magicformulainvesting.com, virtually automates the procedure for novices. Greenblatt offers lots of statistical proof of the formula's success, but emphasizes the importance of faith in seeing the investor through inevitable short-term downturns: "It will be your belief in the overwhelming logic of the magic formula that will make the formula work for you in the long run." He conveys his ideas through a lucid if rudimentary and rather corny explanation of basic investment concepts about risk, return, interest and business valuation. Although the fabulous returns he touts seem too good to be true, Greenblatt's formula is a reasonable variant of mainstream value-investing methods. Investors seeking a little more hands-on excitement than the average mutual fund offers won't go too far wrong following his advice. (Jan.)
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

Product details

  • Publisher ‏ : ‎ Wiley; 1st edition (November 19, 2005)
  • Language ‏ : ‎ English
  • Hardcover ‏ : ‎ 176 pages
  • ISBN-10 ‏ : ‎ 0471733067
  • ISBN-13 ‏ : ‎ 978-0471733065
  • Item Weight ‏ : ‎ 8 ounces
  • Dimensions ‏ : ‎ 5.3 x 0.75 x 7.3 inches
  • Customer Reviews:
    4.5 out of 5 stars 593 ratings

Join Audible Premium Plus for 60% off. Only $5.95 a month for the first 3 months.

About the author

Follow authors to get new release updates, plus improved recommendations.
Brief content visible, double tap to read full content.
Full content visible, double tap to read brief content.

Joel Greenblatt is the founder and a managing partner of Gotham Capital, a private investment partnership that has achieved 40% annualized returns since its inception in 1985. He is a professor on the adjunct faculty of Columbia Business School, the former chairman of the board of a Fortune 500 company, the cofounder of the Value Investors Club website, and the author of You Can Be a Stock Market Genius. Greenblatt holds a BS and an MBA from the Wharton School.

Customer reviews

4.5 out of 5 stars
4.5 out of 5
593 global ratings

Top reviews from the United States

Reviewed in the United States on June 7, 2021
Verified Purchase
2 people found this helpful
Report abuse
Reviewed in the United States on June 22, 2019
Verified Purchase
One person found this helpful
Report abuse
Reviewed in the United States on September 28, 2012
Verified Purchase
4 people found this helpful
Report abuse
Reviewed in the United States on June 29, 2006
Verified Purchase
5 people found this helpful
Report abuse
Reviewed in the United States on March 17, 2006
Verified Purchase
8 people found this helpful
Report abuse

Top reviews from other countries

Badger Number 1
3.0 out of 5 stars System no longer works?
Reviewed in the United Kingdom on October 31, 2017
Verified Purchase
8 people found this helpful
Report abuse
Stan
4.0 out of 5 stars Quite interesting
Reviewed in the United Kingdom on July 4, 2017
Verified Purchase
One person found this helpful
Report abuse
Bluespot Knee Clinic
5.0 out of 5 stars Essential reading for all surgeons
Reviewed in the United Kingdom on April 17, 2016
Verified Purchase
One person found this helpful
Report abuse
Parth
5.0 out of 5 stars Teaches importance of RoCE & Earnings Yield. Gives the Magic Formula. Easy to read & understand.
Reviewed in India on September 14, 2019
Verified Purchase
8 people found this helpful
Report abuse
Kamaljeet Singh Raturi
5.0 out of 5 stars Great book
Reviewed in India on February 23, 2020
Verified Purchase
4 people found this helpful
Report abuse