Korean Job Discussion Forums

[ac3]

The Little Book That Beats the Market / Hardcover


From Publishers Weekly
Contrary 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.


W10,000 includes delivery anywhere in Korea

http://img.photobucket.com/albums/v211/e303/lb2.jpg

<a href="http://smg.photobucket.com/albums/v211/e303/?action=view&current=lb2.jpg" target="_blank"><img src="http://img.photobucket.com/albums/v211/e303/lb2.jpg" border="0" alt="Photobucket"></a>

[IMG]http://img.photobucket.com/albums/v211/e303/lb2.jpg[/IMG]

[ernie]

i can't help but be skeptical about these kind of 'how to make money in the stock market' books. if everybody followed his advice, wouldn't it ruin the profit margins? you have to be AHEAD of the crowd in order to make money playing the stock market.

also, if it's such a great strategy, wouldn't you want to keep it to yourself? why are you bothering to write a book about it? aren't you swimming in money already?

[Juregen]

Indeed, If there was a magic formula, everyone would use it, and if everyone used it, everyone would get the same rate of return, which consequently becomes ... the market rate of return.

There are other reasons why certain stock are undervalued, relative to what the books are showing. It might be that they are in a slowing market, and slowing markets mean that there is little room for growth, ergo sum, stocks become undervalued relative to their real value.


etc ...