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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.

Quotes

Practical lesson: estimate value instead of forecasting short-term price.

Practical lesson: demand a margin of safety.

Practical lesson: prioritize avoiding permanent loss.

Practical lesson: wait for price and quality to align.

These are practical paraphrases, not verbatim quotations.