The Little Book That Still Beats the Market
A simple formula for buying good companies cheap.
Greenblatt lays out his magic formula, a simple rules-based method of buying good businesses at bargain prices using return on capital and earnings yield. Written in plain language, it aims to make value investing accessible to ordinary readers. The updated still edition adds reflections after the financial crisis.
It reduces sound investing to two clear quality and price signals, a model of how to turn a complex domain into a simple, disciplined system. Founders can borrow that instinct for stripping a problem down to the few metrics that matter.
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