Hi gurus,
This video is the beginning of a new series of videos here on the channel. Here we will take a look at some of the most well known investment books and give a quick summary of the book.

This video is about the book: The Little Book That Beats The Market (or the Little Book That Still Beats The Market) and here we take a look at the methods described in the book and see how Greenblatt's Magic Formula really works.

In up coming videos we will be testing the strategies more in depth to see if we can replicate the results from the book.

Timeline:
00:00 Introduction
00:35 Magic Formula Overview
01:10 Is it hard to use this strategy?
02:00 Why did Greenblatt write the book?
02:30 Why Value Investing Works
03:25 Introducing the Magic Formula
04:15 What is Return on Capital?
06:00 How to calculate a company's Magic Formula value
07:45 Generating the list of stocks to invest in
08:20 Does it work?
09:05 Historical returns from 1988 to 2004
11:30 Magic Formula results with large companies
12:30 Why the Magic Formula works
13:58 A few tips from the author to improve your results
14:08 Conclusion

свернуть