Greenblatt claims returns in the order of 30.8 percent per year against a market average of 12.3 percent, and S&P500 return of 12.4 percent … The Magic Formula Joel became fascinated by Warren Buffett’s investment philosophy about acquiring “fantastic businesses at reasonable prices.” It is a must read for every Indian retail investor who tends to buy random stocks. The Little Book That Beats the Market is a classic book on investing in the stock market. He actually refers to it as “the magic formula,” and it just may be. The Little Book That Beats the Market Joel Greenblatt John Wiley & Sons, Inc. 12949 Greenblatt ffirs.f.qxd 10/7/05 8:50 AM Page iii Greenblatt suggests purchasing 30 "good companies": cheap stocks with a high earnings yield and a high return on capital.He touts the success of his magic formula in his book 'The Little Book that Beats the Market' (ISBN 0-471-73306-7), claiming that it does in fact beat the S&P 500 96% of the time, [clarification needed] and has averaged a 17-year annual return of 30.8%. The Little Book That Beats the Market Joel Greenblatt John Wiley & Sons, Inc. 12949 Greenblatt ffirs.f.qxd 10/7/05 8:50 AM Page iii Since Joel Greenblatt’s introduction of the Magic Formula in the 2006 book “The Little Book That Beats The Market,” researchers have conducted a number of studies on the strategy and found it to be a market beater, both domestically and abroad. In The Little Book That Beats the Market – a New York Times bestseller with over 300,000 copies in print – Greenblatt explains how investors can systematically apply a formula that seeks out good businesses when they are available at bargain prices. The Little Book That Beats the Market centers on Joel’s Magic Formula, which reportedly can beat any market index. In 2005, Joel Greenblatt published a book that is already considered one of the classics of finance literature. Methodology. It’s pretty impressive, honestly. Magic Formula that JUST beats the market; Another article suggesting that the Magic Formula beats the market by 4.5%; Magic Formula Backtest. Although the Magic Formula screen I’m using has the same fundamental formula and tries to follow the Little Book, it ends up being slightly different to Greenblatt’s version. by Joel Greenblatt In 2005, Joel Greenblatt published a book that is considered one of the classics of finance literature. Author Joel Greenblatt gives an innovative method for choosing stocks. Page 2 of 178. A Fórmula Mágica de Joel Grenblatt: The Little Book That Beats The Market por Tiago Reis 18/04/2017 14:44 O megainvestidor americano Joel Greenblatt criou um sistema interessante para investidores de longo prazo. The little book that STILL beats the market Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 … The book explains the rationale behind the magic formula in chapter 1 to 5, reveals the magic formula in Chapter 6 and continues with the rest of the book with a lot of data and stats to show how magic formula always work in the long-term. Implementation of Joel Greenblatt's magic formula, which he described in his book - "The Little Book That Still Beats the Market". Here are his main ideas, and the “magical formula” he uses. The Little Book That Still Beats The Market summary lays out Joel Greenblatt's magic step-by-step formula for investing your money long term.