Joel Greenblatt’s The Little Book That Still Beats the Market, published in Taiwan as 《超越大盤的獲利公式：葛林布萊特的神奇法則》, turns value investing into a simple, disciplined process. Its core lesson is that investors do not need constant predictions, market timing, or complicated models. They need a repeatable way to find good businesses trading at attractive prices, then the patience to let that edge work over time.

The book’s “Magic Formula” ranks companies by business quality and valuation, pushing investors toward firms that earn strong returns on capital while still being priced cheaply. Its bigger message is behavioral: a sound strategy can still fail if you abandon it during weak periods. Greenblatt’s approach is useful not because it removes risk, but because it gives ordinary investors a clear checklist, reduces emotional decision-making, and encourages long-term thinking over short-term noise.

Key Concepts

  • Magic Formula investing
  • Buying good businesses at bargain prices
  • Return on capital as a quality signal
  • Earnings yield as a valuation signal
  • Portfolio discipline and patience
  • Long-term process over short-term prediction

Top 3-5 Takeaways

  • Build a rules-based stock screen before looking at stories or headlines. For example, rank companies by quality and cheapness first, then research only the strongest candidates.
  • Do not confuse a cheap stock with a good investment. A low price matters most when the underlying business can generate strong returns on its capital.
  • Hold a diversified basket instead of betting everything on one “best idea.” A practical version is to buy several qualifying stocks over time and review them on a fixed schedule.
  • Expect the strategy to underperform for stretches. Decide your rules before a downturn so you are not rewriting the plan when emotions are loud.
  • Use the formula as a starting point, not a substitute for judgment. Check debt, one-time earnings, industry risks, and whether the business is understandable.

Links below are for checking the current discount.