THE LITTLE BOOK THAT BEATS THE MARKET (BY JOEL GREENBLATT)

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This is my summary of Joel Greenblatt – founder and managing partner at Gotham Capital/inventor of “The Magic Formula” – and his book: The Little Book That Beats the Market.

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Top 5 takeaways from Joel Greenblatt’s The Little Book that Beats the Market:
0:00 Intro
01:08 1. The Madness of the Markets
02:57 2. How Much is a Business Worth?
05:14 3. PE and Roa
08:29 4. The Magic Formula
10:23 5. Step-By-Step Instructions

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TL;DW:
Market prices fluctuate more than underlying business values
It’s difficult to estimate the future earnings of a company, and therefore also what a fair price of the company would be. Most investors have no business doing this.
PE and RoA are two of the most, if not the most, important quantitative factors to consider when buying stocks
According to The Magic Formula, If you buy stocks with a low PE and a high RoA, you will outperform the market by a wide margin over time
Go to magicformulainvesting.com and get started!

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My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.