When it comes to investing in the stock market, investors have plenty of options:
Let top hedge fund manager, Columbia business school professor, former Fortune 500 chairman and New York Times best-selling author Joel Greenblatt take you on a journey that will reveal the Big Secret for both individual and professional investors. Based on path-breaking new research, find out how anyone can beat the market, the index funds and the experts by following a new approach that relies on the principles of value investing, common sense and quantitative discipline. Along the way, learn where "value" comes from, how markets work, and what really happens on Wall Street. By journey's end, small investors (and even not-so-small investors) will have found their way to some excellent new investment choices.
©2011 Joel Greenblatt (P)2011 Simon & Schuster
Either I read Greenblatt's books out of order or this entire book missed the main point of why I read it... to learn how to value companies.
The book adeptly described the difficulty of being accurate in valuations of a business and offered some ways of thinking about valuing a business relative to many factors that I personally would not have thought of. The book went into very interesting detail about why the small investor has a big leg up on hamstrung Wall St. mutual fund managers just seeking to keep their day jobs. He even describes different types of indexes that you can buy and sell as ETFs and how these perform at higher levels than market cap indexes.
In the end, with all this high level understanding and real depth of knowledge on the intricacies of investing, I was still left without the basic strategy of how to go about valuing a business. Annoyingly, he kept alluding to us having or him later explaining the actual way to perform valuations, but it never came.
In the end, I'm like a first time fisherman trying to land a marlin with a 20 lb deep sea rod, 200 lb test line, the best lure money can buy, with no clue how to reel the **** thing in.
I'm a lawyer and mediator. I represent businesses in disputes with their insurers and in other complex litigation. I also assist machinery companies and manufacturers (primarily international) with equipment sales, non-disclosure agreements, and business issues. I also mediate commercial disputes.
This is a really interesting book on some specific approaches to value investing. It has a lot of practical information. The book is also relatively short and an entertaining listen -- well, for a book on this subject.
He speaks to the common investor... and some information on why the small retail investor can actually outperform the big money managers over time. If you have the time and inclination to select your own stocks (if you don't, you should put money into a very low cost index fund or index ETF), then this book will be worth your time to listen to.
I want the secret for myself and no one else.
All Greenblatt books are great and so is this one.
This one asks the right questions in how value an investment.
Joel's writing style, personality, and investing insights are eye opening. It is a fantastic book.
Holy LORD this is bad ! Now I'm sure there will be some intellectuals out there that will spin his advice into a "Horoscope-Like" interpretation of how they can get their portfolio to perform better... but overall, this book tells you NOTHING!! In addition the author can't make his mind up on whether he wants to be "folksy" in his dispensing of info or an MBA throwing so much jargon at you that your head spins.
His whole premise is basically: Find Something; and Buy it for Less... But then goes on to talk about every way to determine a valuation (so that in theory you can buy it for less) and then says... yeah but that doesn't really work. Even his end advice... yeah big surprise here , invest in value mutual funds is flawed, because he pretty much admits that they will be up or down (depending on shear luck of the draw) but Never talks about how to determine if they're on the way up or down or over/under valued. Here's free advice.... There is No formula. Your best bet is to use the Bear Analogy.... If you and a buddy are getting chased by a bear, you don;t have to outrun the bear....just your buddy. Everyone is in the same crappy investment boat, as long as you hedge your bets and don;t go all in on freakin iceberg futures in Ethiopia, you'll be better off then the majority of people out there investing in lottery tickets every week. You Are Smarter Than This BOOK!!!
But I will say that the Narrator was pretty decent
Good audio format and very knowlegable
I'm still learning and need to decide after listening to it again.
"Good introduction to some key truths"
It presents key issues that are vital to understanding how collective investments work, their weaknesses and the true behaviours of fund managers. It steers people towards passive, cheaper, systematic investments in the form of ETFs and particularly the newer breed of 'smart beta' ETFs. However, whilst the journey was enjoyable and informative, they could have just skipped to that simple suggestion without the need for an entire book. But if you are new to investment then the ideas will not be lost, they will be valuable.
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