Joel Greenblatt – The Big Secret for the Small Investor


When it comes to investing in the stock market, investors have plenty of options:

They can do it themselves. Trillions of dollars are invested this way. (Of course, the only problem here is that most people have no idea how to analyze and choose individual stocks. Well, not really the only problem. Most investors have no idea how to construct a stock portfolio, most have no idea when to buy and sell, and most have no idea how much to invest in the first place.)

They can give it to professionals to invest. Trillions of dollars are invested this way.(Unfortunately most professionals actually underperform the market averages over time. In fact,it may be even harder to pick good professional managers than it is to pick good individual stocks.)

They can invest in traditional index funds. Trillions of dollars are also invested this way.(The problem is that investing this way is seriously flawed–and almost a guarantee of subpar investment returns over time.)

They can read The Big Secret for the Small Investor and do something else. Not much is invested this way. Yet….

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.

Author: Joel Greenblatt
Narrator: Adam Grupper
Duration: 3 hours 9 minutes
Released: 11 May 2004
Publisher: Simon & Schuster Audio
Language: English

User Review:

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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