The Little Book That Beats The Market (Joel Greenblatt)

The Little Book That Beats the Market by Joel Greenblatt is a guide to investing in the stock market. The author suggests that the market can be irrational and fluctuate more than the underlying value of businesses. To invest successfully, it is important to consider quantitative factors like P/E and ROA ratios. The author introduces the “magic formula”, which involves buying stocks with a low P/E and a high ROA. The formula has been backtested and found to outperform the market. To use the formula, investors should go to magicformulainvesting.com and follow the step-by-step instructions provided. While the formula is not a guarantee of success, it can help investors identify undervalued companies.