Investing strategy

February 25, 2007

I just finished the audio book version of “The Little Book That Beats The Market” from Joel Greenblatt.  It certainly sounds compelling, and I’m interested in trying it out.  As opposed to ‘trading’ strategies, which you can usually verify within a few days or weeks at most, this is a moderately long term approach, taking 3-5 years before necessarily seeing any results.  That’s not to say that you won’t see positive results in the first few months or years, but Greenblatt goes to great lengths to warn that the ‘magic formula’ in the book can have stretches of ‘not working’, which is also held up as a main reason why it doesn’t matter if everyone ‘knows’ the formula – not everyone will have the patience to put it in to practice.

If you’ve used the ‘magic formula’ in the book for any length of time, and have anything to share, please comment here or just email mgkimsal@gmail.com.  You can check out the barebones magicformulainvesting.com site to get a list of stock picks based on the given formula, or buy the book to learn a bit more.

Posted in Book, Business, Finance, Ideas, Investing