Monday, June 11, 2007

Joel Greenblatt: Magic Formula Investing

Dear readers,

I hope most of you have read the Little Book That Beats the Market by Joel Greenblatt. If you haven't, please get a copy asap and read it a couple of times.

I have personally read it many times, and have come to conclusion that for most investors, Magic Formula Investing, which is only based on simple combination of earning yield and return on invested capital, is the best way to beat the market over the long run.

Thank you Joel Greenblatt for your generous sharing on MFI.

I truly agreed with Mike Price, who said that this book is one of the most important books ever written in the last 50 years.

Therefore, I would discontinue Lau Model Portfolio to track companies as investors are much much better off following the advice by Joel Greenblatt.

Best,
David

1 comment:

Lincoln Minor said...

It takes guts and a sense of duty to your readers to make that admission, David. Nice going.

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