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Value investing2005

The Little Book That Beats the Market

Joel Greenblatt

Introduces the Magic Formula, a systematic value screen based on business quality and valuation.

Chapter summary

Reading theme 1

Focus on how the author helps readers estimate value instead of forecasting short-term price.

Reading theme 2

Focus on how the author helps readers demand a margin of safety.

Reading theme 3

Focus on how the author helps readers prioritize avoiding permanent loss.

Reading theme 4

Focus on how the author helps readers wait for price and quality to align.