'The Little Book That Beats the Market' de Joel Greenblatt

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Caractéristiques

Auteur : Joel Greenblatt
Edition : Wiley, 2006
ISBN : 0-471-73306-7
Nombre de pages : 155
Prix : 17,53 euros


4ème de couverture

Can you spare two hours to learn how to beat the market ?

As unlikely as it may seem, hedge fund manager and professor, Joel Greenblatt, whose investment firm has averaged 40% annual returns for over twenty years, can teach you how. You can achieve investment returns that beat the pants off even the best investment professionals and the top academics. In fact, you can learn how it's possible to more than double the annual returns of the stock market averages.

But there's more. You can do it by yourself. You can do it with low risk. You can do it without making any predictions, and you can do it by following, step by step, a "magic formula" that uses only common sense and two simple concepts. Best of all, once convinced that it really works you can choose to do it for the rest of your life.

In The Little Book That Beats the Market, Greenblatt shows how successful investing can be made easy for investors of any age. Through entertaining anecdotes and practical pearls of wisdom, the book explores the basic principles of successful stock market investing and then reveals a "magic formula" that makes buying good companies at bargain prices automatic.

The formula has been tested over hundreds of different periods and thousands of stock picks and has been proven extremely profitable for those who are willing to "stick with it." Greeblatt guides you down the path of investment success and explains why his approach will continue to work - even after everyone "knows" it.

It's never too early o too late to start investing, and by following the simple steps and magic formula that are clearly outlined and explained, you can achieve extraordinary long-term investment results with a very low level of risk. With The Little Book That Beats the Market as your guide, you'll know exactly where to go and what to do - and it won't even take much time, just a little effort every few months.

JOEL GREENBLATT is the founder and a managing partner of Gotham Capital, a private investment partnership that has achieved a 40% annualized returns since its inception in 1985. He is a professor on the adjunct faculty of Columbia Business School, the former chairman of the board of a Fortune 500 company, the cofounder of ValueInvestorsClub.com, and the author of You Can Be a Stock Market Genius. Greenblatt holds a BS and an MBA from the Wharton School.

Praise for The Little Book That Beats the Market

"A landmark book - a stunningly simple and low-risk way to significantly beat the market !"
-Michael Steinhardt, the Dean of Wall Street hedge fund managers

"This book is the finest simple distillation of modern value investing principles ever written. It should be mandatory reading for all serious investors from 4th grade on up."
-Professor Bruce Greenwald of Columbia Business School, Director of the Heilbrunn Center for Graham and Dodd Investing

A GUIDE FOR BEATING THE MARKET FOR ALL AGES

Two years in business school won't teach you how to beat the market. Two hours with The Little Book That Beats the Market will. Let Joel Greenblatt, founder and a managing partner at Gotham Capital (with average annualized returns of 40% for over twenty years), show you how "beating the market" can be made simple and easy.

The Little Book That Beats the Market does more than simply set out the basic principles for successful stock market investing, it provides a "magic formula" that is easy to use and makes buying good companies at bargain prices automatic. Though the formula has been extensively tested and is a clear breakthrough in the academic and professional world, the commonsense method is convincingly explained using sixth-grade math skills, plain language, and humor. Readers will learn how to use this low-risk method to beat the market and professional managers by a wide margin. Along the way, readers will also learn how to view the stock market; why success eludes almost all individual and professional investors; and why the formula will continue to work even after everyone "knows" it.


Avant-propos

The best thing about this book–from which I intend to steal liberally for the next edition of The Only Investment Guide You'll Ever Need–is that most people won't believe it. Or, believing it, won't have the patience to follow its advice. That's good, because the more people who know about a good thing, the more expensive that thing ordinarily becomes... bye-bye bargain.

Yet unlike most "systems" meant to exploit anomalies in the market, Joel Greenblatt's simple notion will likely retain at least a good deal of its validity even if it becomes widely followed.

I don't want to spoil the surprise–the book is short enough as it is. My role here is simply to introduce you to the author, so you have some sense of just how far you can trust him.

I've known Joel for decades. He is really smart, really modest, really well intentionned and–here is the unusual part–really successfull. (I mean : really successfull.)

More to the point, his success has come from shrewd investing (not from selling books).

He is also funny. I read the first couple of chapters of this book to my 11-year-old nephew, Timmy, and we both enjoyed it. Timmy, with no investable funds that I know of, then fell asleep as I raced to the end, mentally rejiggering my retirement plan.

Let me tell you this much: In the beginning, there were mutual funds, and that was good. But their sales fees and expenses were way too high. Then came no-load funds, which were better. They eliminated the sales fee, but were still burdened with management fees and with the tax and transactional burden that comes from active management. Then came "index funds," which cut fees, taxes, and transaction costs to the bone. Very, very good.

What Joel would have consider, in effect, is an index-fund-plus, where the "plus" comes from including in your basket of stocks only good businesses selling at low valuations. And he has an easy way for you to find them.

Not everyone can beat the averages, of course–by definition. But my guess is that patient people who follow Joel's advice will beat them over time. And that if millions of people should adopt this strategy (Vanguard: please hurry up and offer a low-priced fund like this), two things will happen. First, the advantage of investing this way will diminish but not disappear. Second, stock market valuations will become ever so slightly more rational, making our capital allocation process ever so slightly more efficient.

Not bad work for a skinny little book.

Now, gather ye what 11-year-olds ye may, and dive in.

          –Andrew Tobias, author of
          The Only Investment Guide You'll Ever Need


Introduction

This book was originally inspired by my desire to give each of my five children a gift. I figured if I could teach them how to make money for themselves, then I would be giving them a great gift–truly one that would keep giving. I also figured that if I could explain how to make money in terms that even my kods could understand (the ones already in sixth and eighth grades, anyway), then I could pretty much teach anyone how to be a successful stock market investor.

While the concepts covered in this book may seem simple–perhaps too simple for sophisticated investors–each step along the way is there for a reason. Stay with it, and I assure you the payoff for both beginning and experienced investors will be huge.

After more than 25 years of investing at an Ivy League business school, I am convinced of at least two things:

1. If you really want to "beat the market," most professionals and academics can't help you, and

2. That leaves only one real alternative: You must do it yourself.

Luckily, that might not be such a bad thing. As improbable as it may seem, you can learn to beat the market. Through a simple, step-by-step process, this book can teach you how. To help you along, I have included a magic formula. The formula is simple, it makes perfect sense, and with it, you can beat the market, the professionals, and the academics by a wide margin. And you can do it with low risk. The formula has worked for many years and will continue to work even after everyone knows it. Although the formula is easy to use and will not take much of your time, it will work for you only if you make the effort to fully understand why it works.

Along the way, you will learn:

  • How to view the stock market
  • Why success eludes almost all individual and professional investors
  • How to find good companies at bargain prices
  • How you can beat the market all by yourself

I have included an Appendix section for those of you with a higher level of financial training, but it is not necessary for people to read or understand the appendixes to be able to understand and apply the methods found in this book. The truth is that you don't need an MBA to beat the market. Knowing lots of sophisticated formulas or financial terms isn't what makes the difference. Understanding the simple concepts in this book... is.

So please enjoy the gift. May the small investment of time (and 20 bucks or so) greatly enrich your future.

Good luck.


Sommaire

Acknowledgmentsix
Foreword by Andrew Tobiasxiii
Introductionxvii
  
  
Chapter One1
  
Chapter Two8
  
Chapter Three16
  
Chapter Four26
  
Chapter Five37
  
Chapter Six48
  
Chapter Seven58
  
Chapter Eight67
  
Chapter Nine77
  
Chapter Ten88
  
Chapter Eleven100
  
Chapter Twelve110
  
Chapter Thirteen121
  
  
Step-by-Step Instructions 131
Appendix137

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