The Little Book That Beats the Market by Joel Greenblatt (High Quality)

In 2005, Joel Greenblatt introduced a groundbreaking investment strategy with The Little Book That Beats the Market, a New York Times bestseller that has sold over 300,000 copies. In this classic of finance literature, Greenblatt reveals a straightforward, systematic approach for investors to outperform market averages by identifying high-quality businesses available at bargain prices. Now, with the 2010 edition—The Little Book That Still Beats the Market—Greenblatt updates his analysis, incorporating new data from the recent financial crisis and performance insights through 2009.

Greenblatt’s formula for success is designed to help investors buy above-average companies at below-average prices—automatically. Using plain language, humor, and simple math (accessible to anyone with a basic understanding of numbers), Greenblatt walks readers through the core principles of value investing. He shows how anyone can apply his time-tested formula to beat both the market and professional managers over the long term.

The book explores why most individual and professional investors struggle to achieve consistent success, and why Greenblatt’s formula is designed to work even as it becomes more widely known. The key to the formula’s success lies not in its simplicity but in understanding why it works—a critical concept for investors to grasp for sustainable, long-term results.

Through a step-by-step journey, readers will learn how to approach investing with a value-oriented strategy that can be applied in both good and bad market conditions. Whether you're a novice or experienced investor, The Little Book That Still Beats the Market offers a clear and actionable plan to help you navigate the complexities of stock market investing.

As the Wall Street Journal put it, Greenblatt’s original edition aimed to provide advice so clear and straightforward that his own children—ranging from ages 6 to 15—could understand and apply it. The result is one of the best, most accessible guides to value investing available today.