The Little Book That Beats the Market Audio CD – Bargain Price, January 30, 2006
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About the Author
- 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)
- Customer Reviews:
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Top reviews from the United States
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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.
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.
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.
By Amazon Customer on March 18, 2020
Top reviews from other countries
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.