quarta-feira, abril 12, 2006

The Little Book That Beats the Market

Editorial Reviews

From Publishers WeeklyContrary to efficient-market naysayers, this engaging investment primer contends that ordinary stock-market investors can indeed get better-than-market returns over the long haul. Greenblatt (You Can Be a Stock Market Genius), a Columbia Business School adjunct professor, touts a "value-oriented" approach that looks for bargain stocks whose share price is cheap relative to the company's profitability. His version is a "magic formula" that ranks stocks on the basis of two variables—the earnings yield and the business's return on capital. His Web site, magicformulainvesting.com, virtually automates the procedure for novices. Greenblatt offers lots of statistical proof of the formula's success, but emphasizes the importance of faith in seeing the investor through inevitable short-term downturns: "It will be your belief in the overwhelming logic of the magic formula that will make the formula work for you in the long run." He conveys his ideas through a lucid if rudimentary and rather corny explanation of basic investment concepts about risk, return, interest and business valuation. Although the fabulous returns he touts seem too good to be true, Greenblatt's formula is a reasonable variant of mainstream value-investing methods. Investors seeking a little more hands-on excitement than the average mutual fund offers won't go too far wrong following his advice. (Jan.) Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. Review“a marvellously clear explanation of the value investing approach” (Financial Times (also on FinancialNetnews.com) 10th December 2005)

“The book is certainly written simply and the concepts are conveyed compelling” (Daily Telegraph, 29th November 2005)

"The Little Book is one of the best, clearest guides to value investing out there." (The Wall Street Journal, November 9, 2005)