Magic Formula

I have just finished reading of Joel Greenblatt's book, The Little Book That STILL Beats The Market.

This book is only 183 pages in total with text that is easy to understand. The actual idea can be said in a few pages and mostly Greenblatt explains how the Magic Formula actually works and what results it has gained. Previously I posted a blog about Greenblatt explaining his formula in an interview and I still recommend you to watch it if you find this even remotely interesting. If you are still interested to know more you should read his book. It is an easy to read book with a cheap price tag but gives you much more knowledge than you can expect.

Basically his method is very simple. Find cheap but great companies and invest into those for one year at a time. After one year do a new search. So it is value investing with a slightly different style. In the book Greenblatt explains back testing results and what you can expect as an investors who follows his formula. I can recommend it to anyone who is still searching for an investing method. At least this book will give you some ideas to use in your search.

You can also check out his web site www.magicformulainvesting.com

Currently playing Her We Kum by Molotov.