This is a short and simple book that convincingly explains how anyone can use a "magic formula" to more than double the stock market's return. The formula is new, unique, simple – encapsulating the best of Buffett. The incredibly robust results are a clear breakthrough in both the academic and professional world. The simple aspect is the key.
As improbable as it may seem, all readers will learn to "beat the market".
First, readers will learn a magic formula. The formula is simple, makes perfect sense, and with it, they can beat the market, the professionals and the academics by a wide margin. And they can do it with low risk. The formula has worked for many decades and will continue to work even after everyone knows it.
How well does it work? For small stocks, for example, in a period where the market achieved an annual return of 9.5%, the model picked portfolios that averaged well over 200er year (tested over 192 separate one-year periods). The formula achieves this with substantially less risk: during these 192 periods, the model’s worst 36 month period was breakeven; the overall market? Loss of over 40%. Larger stocks achieve similar results.
Along the way, readers will also learn:
-how to view the stock market
-why success eludes almost all individual and professional investors
-how to find good companies at bargain prices, and
-how you can "beat the market" all by yourself.
Finally, there is appendix for those readers with a higher level of financial training, but it is not necessary for people to read or understand the appendix to be able to understand and apply the methods found in this book. The truth is you don’t need an MBA to beat the market. Knowing lots of sophisticated formulas or financial terms isn’t what makes the difference. Understanding the simple concepts in this book is.
[Back to top]