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.
Checklist
Do I have a rule to estimate value instead of forecasting short-term price?
Do I have a rule to demand a margin of safety?
Do I have a rule to prioritize avoiding permanent loss?
Do I have a rule to wait for price and quality to align?
Write down what would invalidate the thesis.
Set a review date before acting.