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

Support the channel by getting The Little Book that Beats the Market by Joel Greenblatt here: https://amzn.to/2pUZ3zK As an Amazon Associate I earn from qualified purchases. --- 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. --- My main tool for fundamental screening and analysis of stocks: https://app.tikr.com/register?ref=tsi (If you sign up I earn a small commission) --- 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 --- 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! --- 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.