This video is the beginning of a brand-new collection of videos right here on the network. Below we will certainly have a look at a few of one of the most well well-known financial investment publications as well as give a quick recap of the publication.
This video has to do with guide: The Little Book That Beats The Market (or the Little Book That Still Beats The Market) and right here we take an appearance at the techniques defined in guide and also see how Greenblatt’s Magic Formula actually functions.
In up coming video clips we will be examining the strategies a lot more in deepness to see if we can reproduce the arise from guide.
00:35 Magic Formula Overview
01:10 Is it hard to utilize this method?
02:00 Why did Greenblatt write guide?
02:30 Why Value Investing Works
03:25 Introducing the Magic Formula
04:15 What is Return on Capital?
06:00 How to compute a business’s Magic Formula value
07:45 Generating the list of supplies to purchase
08:20 Does it function?
09:05 Historical returns from 1988 to 2004
11:30 Magic Formula results with huge business
12:30 Why the Magic Formula works
13:58 A couple of tips from the writer to boost your results