The Little Book That Beats the Market by Joel Greenblatt

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In 2005, Joel Greenblatt published a book that is alreadyconsidered one of the classics of finance literature. In TheLittle Book that Beats the Market—a New York Timesbestseller with 300,000 copies in printGreenblattexplained how investors can outperform the popular market averagesby simply and systematically applying a formula that seeks out goodbusinesses when they are available at bargain prices. Now, with anew Introduction and Afterword for 2010, The Little Book thatStill Beats the Market updates and expands upon the researchfindings from the original book. Included are data and analysiscovering the recent financial crisis and model performance throughthe end of 2009. In a straightforward and accessible style, thebook explores the basic principles of successful stock marketinvesting and then reveals the author’s time-tested formulathat makes buying above average companies at below average pricesautomatic. Though the formula has been extensively tested and is abreakthrough in the academic and professional world, Greenblattexplains it using 6th grade math, plain language andhumor. He shows how to use his method to beat both the market andprofessional managers by a wide margin. You’ll also learn whysuccess eludes almost all individual and professional investors,and why the formula will continue to work even after everyone“knows” it.

While the formula may be simple, understanding why the formulaworks is the true key to success for investors. The book will takereaders on a step-by-step journey so that they can learn theprinciples of value investing in a way that will provide them witha long term strategy that they can understand and stick withthrough both good and bad periods for the stock market.

As the Wall Street Journal stated about the originaledition, “Mr. Greenblatt…says his goal was to provideadvice that, while sophisticated, could be understood and followedby his five children, ages 6 to 15. They are in luck. His‘Little Book’ is one of the best, clearest guides tovalue investing out there.”


About Joel Greenblatt

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Joel Greenblatt is the founder of Gotham Capital, an invest-ment partnership that achieved 40% annualized returns for the twenty years after its founding in 1985. He is a professor on the adjunct faculty of Columbia Business School, the Chief Strategist for Formula Investing, the former chairman of the board of a Fortune 500 company, and the author of You Can Be a Stock Market Genius and The Little Book That Beats the Market. Greenblatt holds a BS and an MBA from the Wharton School.
Published July 16, 2010 by Wiley. 180 pages
Genres: Business & Economics, Professional & Technical. Non-fiction

Unrated Critic Reviews for The Little Book That Beats the Market

Publishers Weekly

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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 r...

Nov 14 2005 | Read Full Review of The Little Book That Beats th...

The Motley Fool

Greenblatt does point out that the formula does not beat the index in every yearlong period tested, but that in any period lasting three consecutive years or longer, his formula does win.

Mar 23 2007 | Read Full Review of The Little Book That Beats th...

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