The Little Book That Still Beats the Market

Name: The Little Book That Still Beats the Market
Author: Joel Greenblatt

by Joel Greenblatt

Business & Economics

In 2005, Joel Greenblatt published a book that is already considered one of the classics of finance literature. In The Little Book that Beats the Market—a New York Times bestseller with 300,000 copies in print—Greenblatt explained how investors can outperform the popular market averages by simply and systematically applying a formula that seeks out good businesses when they are available at bargain prices. Now, with a new Introduction and Afterword for 2010, The Little Book that Still Beats the Market updates and expands upon the research findings from the original book. Included are data and analysis covering the recent financial crisis and model performance through the end of 2009. In a straightforward and accessible style, the book explores the basic principles of successful stock market investing and then reveals the author’s time-tested formula that makes buying above average companies at below average prices automatic. Though the formula has been extensively tested and is a breakthrough in the academic and professional world, Greenblatt explains it using 6th grade math, plain language and humor. He shows how to use his method to beat both the market and professional managers by a wide margin. You’ll also learn why success 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 formula works is the true key to success for investors. The book will take readers on a step-by-step journey so that they can learn the principles of value investing in a way that will provide them with a long term strategy that they can understand and stick with through both good and bad periods for the stock market. As the Wall Street Journal stated about the original edition, “Mr. Greenblatt...says his goal was to provide advice that, while sophisticated, could be understood and followed by his five children, ages 6 to 15. They are in luck. His ‘Little Book’ is one of the best, clearest guides to value investing out there.”

Bridges

Books that connect different domains

Bridges summary

Your engagement with Joel Greenblatt's *The Little Book That Still Beats the Market* reveals a deep-seated interest in unlocking predictable, superior results through systematic understanding and intentional action, a theme that resonates powerfully across your interconnected reading list. The core of Greenblatt's groundbreaking work lies in demystifying stock market investing by presenting a straightforward, formulaic approach to identifying high-quality companies at bargain prices. This pursuit of a replicable, effective strategy is mirrored in James Clear's *Atomic Habits*, where the emphasis is on building optimal personal systems and habits through a blueprint for self-improvement. Both authors, in their respective domains of finance and personal development, champion the power of understanding underlying principles to engineer desired outcomes, suggesting a broader quest for mastery over complexity by seeking out elegant, repeatable processes. This shared fascination with identifying and leveraging high-impact elements is further illuminated by your connection to Greg McKeown's *Essentialism*. Just as Greenblatt's "magic formula" identifies the few, undervalued companies worth investing in, *Essentialism* advocates for the deliberate elimination of the trivial many to focus on the vital few in all aspects of life. You're drawn to methodologies that cut through noise and identify the essential drivers of success, whether in identifying undervalued stocks or prioritizing impactful tasks.