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."
