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.
Core ideas
Idea 1
Estimate value instead of forecasting short-term price.
Idea 2
Demand a margin of safety.
Idea 3
Prioritize avoiding permanent loss.
Idea 4
Wait for price and quality to align.