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The Little Book That Beats the Market Audio CD – Bargain Price, January 30, 2006
by
Joel Greenblatt
(Author),
Adam Grupper
(Reader)
Joel Greenblatt
(Author)
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Book 9 of 29: Little Books. Big Profits
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Print length3 pages
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PublisherSimon & Schuster Audio
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Publication dateJanuary 30, 2006
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Dimensions5.76 x 5.3 x 1.06 inches
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ISBN-101428101403
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ISBN-13978-1428101401
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Editorial Reviews
About the Author
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 ValueInvestorsClub.com, and the author of You Can Be a Stock Market Genius. Greenblatt holds a BS and an MBA from the Wharton School.
From AudioFile
A Wharton-trained head of a successful investment partnership has a foolproof method for evaluating stocks: Companies are worth what they return to investors on a consistent basis. Trusting yourself to use this simple principle will work much better than any get-rich schemes, and much better than trusting other people to select stocks for you. The method requires some digging into a stock's fundamentals, understanding risk factors, and paying close attention to timing when buying and selling. An enhanced CD contains printable details of the author's "magic formula" for evaluating stocks. Adam Grupper does well with this material, projecting confidence and using vocal tones and pacing that are enjoyable for the entire program. T.W. © AudioFile 2006, Portland, Maine-- Copyright © AudioFile, Portland, Maine
Start reading The Little Book That Still Beats the Market on your Kindle in under a minute.
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Product details
- ASIN : B0026IBXUU
- Publisher : Simon & Schuster Audio; 0 edition (January 30, 2006)
- Audio CD : 3 pages
- ISBN-10 : 1428101403
- ISBN-13 : 978-1428101401
- Item Weight : 4 ounces
- Dimensions : 5.76 x 5.3 x 1.06 inches
-
Best Sellers Rank:
#544,092 in Books (See Top 100 in Books)
- #990 in Stock Market Investing (Books)
- #1,915 in Introduction to Investing
- #2,099 in Deals in Books
- Customer Reviews:
Customer reviews
4.5 out of 5 stars
4.5 out of 5
1,544 global ratings
How are ratings calculated?
To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzes reviews to verify trustworthiness.
Top reviews
Top reviews from the United States
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Reviewed in the United States on November 18, 2019
Verified Purchase
I have mixed emotions... the book was very simple me easy to read as an investment newby. The book promises you this magic formula, which it does explain in detail but that’s really all the book was about and it strongly discourages you from investing on your own. I was hoping for some more broad info about the stock market and stuff. At the end of the book, there’s a link to his free website, where you can use the computer system that generates the “magic formula” so I guess that’s pretty cool. He has a mutual fund where he uses the formula that you can buy into for a 1% fee. I feel like the whole book and the website are just there to make you buy into this fund so he can make money. You could do without his fund and use the formula yourself but I’m not sure how confident I am in my stock market skills yet.
53 people found this helpful
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Reviewed in the United States on February 26, 2020
Verified Purchase
In my early days of learning investing i really enjoyed this book, and I even recommended it to my friends. The idea is simply: buying undervalued good businesses and holding them long-term will eventually beat the market index.
However it's bit of a fairy tale to expect something as simple as this book can make you 20%+ every year for a long time. I'm curious how many readers have actually followed this formula ... like I did. Cruel truth: over the past 2.5 years, the magic formula underperformed SP500 for more than 30% (SP500 + 20%, VS magic formula -12%). This is a huge gap to overcome, so even if i keep trying and wish everything goes well like the book says, i expect my first underperform period (vs SP500) will be at least 5-6 years.
5 years of underperformance during a bull market! No normal people can stay that long simply because a book's promises. FYI I studied the capital market trend and i finally able to understand why we shouldn't follow this book at all. There are simply too many flaws in logic for individuals like me.
Anyway, you all are welcomed to try, some of you may actually be able to do pretty well, but I'm sure at the end most of us are still better off just sticking to indexing . May the force be with you.
However it's bit of a fairy tale to expect something as simple as this book can make you 20%+ every year for a long time. I'm curious how many readers have actually followed this formula ... like I did. Cruel truth: over the past 2.5 years, the magic formula underperformed SP500 for more than 30% (SP500 + 20%, VS magic formula -12%). This is a huge gap to overcome, so even if i keep trying and wish everything goes well like the book says, i expect my first underperform period (vs SP500) will be at least 5-6 years.
5 years of underperformance during a bull market! No normal people can stay that long simply because a book's promises. FYI I studied the capital market trend and i finally able to understand why we shouldn't follow this book at all. There are simply too many flaws in logic for individuals like me.
Anyway, you all are welcomed to try, some of you may actually be able to do pretty well, but I'm sure at the end most of us are still better off just sticking to indexing . May the force be with you.
38 people found this helpful
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Reviewed in the United States on October 26, 2019
Verified Purchase
I discovered the love of the stock market through this. Well explained, a good place to start, and broken down at a beginner's level.
You are going to learn about the stock market and ratios. It was very useful when I bought it 3 years ago. Since then, I realized that everything you need and want to learn is readily available for free.
However, had i followed the advise within, I'd have lost money when using their formulas. For example, one of the constants in the website from the book is Gilead. In three years since I bought this book, Gilead still not making investors money outside of the dividends provided.
You are going to learn about the stock market and ratios. It was very useful when I bought it 3 years ago. Since then, I realized that everything you need and want to learn is readily available for free.
However, had i followed the advise within, I'd have lost money when using their formulas. For example, one of the constants in the website from the book is Gilead. In three years since I bought this book, Gilead still not making investors money outside of the dividends provided.
26 people found this helpful
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Reviewed in the United States on June 4, 2017
Verified Purchase
The Good: Its a short entertaining book that you can finish in a few days of casual reading. The investing strategy presented appears to work (at least over the 19 years described).
The Not so Good: After reading a bunch of academic papers where investing strategies are rigorously back tested over 50-80+ year time frames I was a bit shocked to see the original version of this book listed a '17 year' back test period. Why 17 years and not 15? Why not 20 years? Why choose the back test period that has a huge long bull market (80s and 90s)? Seems a bit like curve fitting the data to me and without a good explanation from the author on why those 17 years were chosen we are left to wonder. Thankfully this updated version includes 4 'out of sample' years which start from 2005 and end in 2009 showing that the strategy seems to have held up by outperforming the S&P over that 4 year period (not each year but over the 4 years total). Furthermore, you are buying and selling 30 stocks each year this will have tax consequences (unless you are investing through an IRA or 401k) and transaction costs which were not really mentioned.
The Not so Good: After reading a bunch of academic papers where investing strategies are rigorously back tested over 50-80+ year time frames I was a bit shocked to see the original version of this book listed a '17 year' back test period. Why 17 years and not 15? Why not 20 years? Why choose the back test period that has a huge long bull market (80s and 90s)? Seems a bit like curve fitting the data to me and without a good explanation from the author on why those 17 years were chosen we are left to wonder. Thankfully this updated version includes 4 'out of sample' years which start from 2005 and end in 2009 showing that the strategy seems to have held up by outperforming the S&P over that 4 year period (not each year but over the 4 years total). Furthermore, you are buying and selling 30 stocks each year this will have tax consequences (unless you are investing through an IRA or 401k) and transaction costs which were not really mentioned.
30 people found this helpful
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Reviewed in the United States on March 18, 2020
Verified Purchase
This is one of the most highly rated introductions to value investing for "average folk" - and reading it through, you can clearly see why. If you have prior experience with stocks and investment, the first two chapters may seem a bit "slow", but this builds a solid foundation for the rest of the book. The rational, logical explanation to the investment approach recommended by the author is easy to understand, and clear guidance to implementing the steps in effective valuation (along with alternatives, if you choose to use slightly different approaches to the strict method recommended) is provided as well. Overall an excellent read.

5.0 out of 5 stars
Excellent read, even today
By Amazon Customer on March 18, 2020
This is one of the most highly rated introductions to value investing for "average folk" - and reading it through, you can clearly see why. If you have prior experience with stocks and investment, the first two chapters may seem a bit "slow", but this builds a solid foundation for the rest of the book. The rational, logical explanation to the investment approach recommended by the author is easy to understand, and clear guidance to implementing the steps in effective valuation (along with alternatives, if you choose to use slightly different approaches to the strict method recommended) is provided as well. Overall an excellent read.
By Amazon Customer on March 18, 2020
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8 people found this helpful
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Top reviews from other countries

Jake Suter
2.0 out of 5 stars
A shame the author doesn't clarify on the cover the book is for kids
Reviewed in the United Kingdom on October 24, 2018Verified Purchase
A book clearly written as something of a children's introduction to stocks. The book makes sense, is a fairly accurate, if dumbed down, exploration of the basics of stock trading, and can provide the faintest of outlines of a method you can try to use if you want to be a day trader. But that is unlikely unless you've already got enough money that day trading is an excuse not to get an actual job. The upshot of it all is "here's how you theoretically beat the market" and "use my secret formula" which turns out to be a free online program that records trends and suggests worthwhile stocks. Sound too good to be true? The author says so himself: it is. It is an algorithm that does a slightly better job than an actual broker, which is to say it doesn't do a great job. The program has shown below average results since this book was originally released. The author implores you to stay with it because he cites data "proving" its predictions could have made you a multi millionaire from the late 70's to early 2000's, but perfect hindsight will have that effect. I don't know whether the author believed his program could make millionaires or if he even cares beyond making a quick buck from a book written in one afternoon. In all, it's a good introduction to stock trading, if you haven't hit puberty yet. I would hazard to even call it stocks 101, so you would do well to spend your money on a book with more substance, which won't be hard.
17 people found this helpful
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Amazon Customer
4.0 out of 5 stars
Brilliant for the Very Patient
Reviewed in the United Kingdom on June 9, 2016Verified Purchase
It does beat the market of that I have no doubt but where it falls at the first hurdle for me at age 63 is time. I simply do not have enough time for the strategy to work or the nerves to watch my stocks fall and hopefully rise again. By the time the market wakes up to the value in the stocks it recommends I might be dead. A brilliant book which is well worth the read. If you are on the last leg like myself you could do a lot worse than order Stan Weinsteins book at the same time. I have no doubt that if I had bought this book twenty years ago I would be a very happy and wealthy man now.
12 people found this helpful
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A
4.0 out of 5 stars
Worth a read but not for those looking to actively analyse company fundamentals
Reviewed in the United Kingdom on November 5, 2020Verified Purchase
Simply explained for a beginner but biased towards magic formula which makes sense but have to have a fairly high risk appetite. This is not a book that teaches you how to beat the market through traditional means. It's more of a follow this computer driven model to make investing easy for those not interested in the intricacies of analysis. Very easy read and worth buying to gain a fundamental understanding of the markets
One person found this helpful
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Pedro
5.0 out of 5 stars
Simples e Genial
Reviewed in Brazil on August 26, 2019Verified Purchase
Joel Greenblat consegue explicar, de maneira extremamente simples e eficiente, o funcionamento de uma empresa e o seu processo de análise do ponto de vista do investidor. Ao longo do livro ele prepara uma séria de argumentos para defender o uso de um processo chamado Magic Formula para comprar empresas listadas na bolsa.
Não uso muito a Formula. Gosto de fazer analises mais profundas, já que trabalho com análise fundamentalista. Mas independente disso, o livro vale a pena ser lido, principalmente para pessoas que estão começando a estudar agora.
Linguagem bem simples, fácil de entender e engraçado. Incrível perceber que Joel Greenblat entende e domina tanto do assunto a ponto de explicá-lo de maneira que uma criança conseguiria entender.
Não uso muito a Formula. Gosto de fazer analises mais profundas, já que trabalho com análise fundamentalista. Mas independente disso, o livro vale a pena ser lido, principalmente para pessoas que estão começando a estudar agora.
Linguagem bem simples, fácil de entender e engraçado. Incrível perceber que Joel Greenblat entende e domina tanto do assunto a ponto de explicá-lo de maneira que uma criança conseguiria entender.

Dr. K. Maslin
5.0 out of 5 stars
Great guide
Reviewed in the United Kingdom on May 13, 2017Verified Purchase
Very good and easy read book to help understand how the stock market works (or doesn't at times) and why the only way to make money is to do the research on possible company stocks
2 people found this helpful
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