The Little Book That Still Beats the Market Hardcover – Illustrated, 24 September 2010

It's so give you a basic idea about how stock market with and how to find companies to invest and how long should you invest.You will not become a investment wizard after reading this, but it will give you a head start. You can't solely rely on this book, but this book will help to understand the advanced books you'll read later.I'm planning to read another book "InvestED".

The new entrant into the stock market is usually bombarded with so much information about buying good businesses cheap, holding for long term and selling high. But, if one follows the advice, either cheaply bought stocks remain cheap or good businesses never trade at cheap prices. Accidentally, if you take risk and buy a good business at a higher price, the market corrects and you end up losing.The author provides a simple, tested solution for the above problem. Take top 200-250 stocks. Rank them by earnings yield. Rank them separately by their return on capital. Combine these ranks to identify good companies which trade at not so high prices.The philosophy behind the process is same as that of value investing. To buy good businesses at bargain prices. But it solves the problem mentioned in the first.para.Book is written in an easy to.understand manner, with occasional humour. Recommended for novice investors.Negatives. Speaks in the American stock market context. Boring at some parts.

If Ben Graham were around, he would have recommended this book as an embodiment of his thesis. What stands out is that Greenblatt is both an academician and a practitioner - and simultaneously successful at both. So, when he advises on buying above average businesses at below average prices, there cannot be a simpler yet more effective strategy where results are guaranteed.The book is written in the most simple way for the novice but magic formula's utility is for everyone. So,Investment Option for below average returns - Mutual Funds/ Hedge Funds (due to poor performance, and/or frictional costs)Investment Option for average returns - Index Investing (low frictional costs)Investment Option for above average returns - Long term Magic Formula Investing (buying above average businesses for below average prices)Patience is what will differentiate one Investor from another. Thanks Greenblatt.

Respect to the author for explaining these financial terms in very humorous and effective way!Also the magic formula is pretty logical \m/

Well written book with good illustrations but I feel it's very hard to apply the magic formula particularly to the Indian stocks. But still this book imparts a lot of knowledge into the investors brain

The book mentions one simple and seemingly logical concept on approach to investing. The language is simple with very little jargon. It’s well written with witty tit-bits which keeps it from being a boring read. As i have no financial background, i cannot say how accurate or technically sound the advice given here is. Overall, its worth a read.

Book is started with examples for beginners to understand on how the stock market operates and slowly getting into how to find right stocks to find.It is interesting to find the simple strategy which can implemented to find right stocks to stay invested for over a period of time. Also the website link to analyse practically.I started doing the analysis for Indian stocks with this idea in the backdrop and results were amazing in excel and planning to implement practically going forward.

Good language and easy to understand. In US context. But the underlying principles seem legit. A must read book for beginners.