The Little Book That Beats the Market

[mizchels]

I found "The Little Book That Beats the Market" by Joel Greenblatt to be interesting, presenting an approach to investing in "bargain stocks", holding them a year or three, selling them off, investing in more bargains, etc. For those that have read this book, what are your thoughts? For those that haven't, it's a quick read you might also find useful.

 

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[slim_jim]

I thought it was good. I recommended it to my 14 son, whose name is Jason. He has also sold gum to fund his school lunches, when he doesn't want to brownbag. He hasn't started reading it yet.

I am looking to use it, along with the IBD 100 for mid term investing.

 

[LAMBO-N-IT]

I just finished reading it. Put it in the back burner a year or so ago when I heard "magic formula." Its a decent book. I guess it can help you narrow down some companies and start researching them further but I wouldn't buy 5-7 stocks just based on something that formula generates every 3 months and hope for the best. He even says in the book you should only be investing money that you don't mind leaving in the market for years not months. Thats in the slow lane for me for sure.

 

[MrPink]

If this stragedy was known then it would be priced into the market. If you think that you can out do the pros then go ahead.

Mr. Pink

 

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[Hostile]

I read the book about 6 months ago and I recently read an artile in I think it was Kiplingers magazine -MAR 08- about this book. It is a very informative article. Says something along the lines of if you followed this strategy, add nothing, take away nothing, you would have had a 31% apr from 1988 to 2004. So I pulled up a handy compound interest calculator and found out that starting out with 1000, and adding 1000 a month in 88, or 12000 a year would end up with 3,838,958.55 in 04. And that is compounding 1 time a year. I would say that is pretty simple. It just takes a little bit of guts to stick to it when its not working. Its a good current article with a lot of good points about the book. I dont have time to find a link to it right now.

 

[Hostile]

Ok here is a link to that article.
http://www.kiplinger.com/magazine/archives/2008/03/simple-strategy.html

 

[MrPink]

Why do we see such wild market sings, no idea, but I know that I don't know

Mr. Pink

 

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