Beating the Market

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.

– Joel Greenblatt
The Little Book That Beats the Market

I completely agree with Joel Greenblatt on this point.  I was just rereading his book and I thought I would share with you this little gem.

5 thoughts on “Beating the Market

  • March 18, 2006 at 12:36 am

    I wholeheartedly agree with #1 & #2.

    However, it would seem that the best way to beat the market is to.. write a book on how to beat the market. :-)

  • March 18, 2006 at 7:41 am

    … or open a hedge fund to collect fees to beat the market.

  • March 21, 2006 at 6:37 pm

    GDaddy Bill Williams author of method “Trading Chaos” will be in Moscow with his master-class in April. Btw I know a lot people who has original method, but not public it in book.

  • May 27, 2007 at 6:19 pm

    The magic formula is a rough screener……a statistical past does not carry to the future….there is no tooth fairy, as the book states, nor can wall streeters help you beat markets. Anything magic is more fantasy ….

  • May 27, 2007 at 6:34 pm

    The thing that bothers me about the formula is you are supposed to sell and buy every year…..thats rather close to trading, Mr Buffet would not go for that. In down years the logic was the market has not corrected the price yet, but if you sell so quick, don’t you miss the market correction of price ? Also noticed many stocks had a one time gain to boost ROE … ie- NATH sold a block of real estate. Transaction costs and taxes do not seem to be factored in…..A good statistician can prove anything

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