The Little book that still beats the market



The Little Book the still Beats the Market is a good introduction to the market/stock trading. It is a pretty simple and easy read that provides sound principles of investing. Joel Greenblatt uses plain language to describe the basics and nature of the stock market. 

He provides a formula that involves ranking stocks based off of return on capital, and earnings yielded. He advises that you ought to purchase 30 of the best ranking firms based off of this notion described and sit on them until the year is over. Then, repeat this process. 

Favorite Passages: 

"Stock prices move around wildly over very short periods of time. This does not mean that the values of the underlying companies have changed very much during that time period.. the stock market acts very much like a crazy guy named Mr. Market." 

"It is Mr. Market's constantly changing emotional state that creates the bargain opportunities." 

My Takeaways: 

If you are someone who is interested in personal finance, this should be a book that you read in addition to Money (By Tony Robbins, which is my #1 personal finance book recommendation, ), The Wealthy Barber, The Millionaire Next Door, and Rich Dad Poor Dad. These ought to be on your bookshelf, and it wouldn’t hurt to refer back to them every once in a while. 

If you are not someone who is interested in personal finance you probably should change that. Money is a fundamental component to quality of life, and freedom. For these reasons, it is important to have a basic knowledge of the key ideas and concepts. 

Screen Shot 2017-11-05 at 11.48.11 AM.png