Each and every one of us wants that one secret formula of earning whopping returns on our investments. If anyone stated otherwise, he/she is obviously lying. But while most investment gurus discuss the philosophies of how to earn these bumper returns, no one really gives out their secret formula. They would talk about the general process followed. Or give examples of their own successes. However the secret formula remains exactly what the name suggests - a big secret.
As a result most investors keep running from one site to another, from one book to another in the search of this formula. For such investors there is a book they can refer to if they wish to learn the formula of successful investing. This book is written by a gentleman named Joel Greenblatt and goes by the name of "The Little Black Book that Beats the Market". Written in simple language that is easy to understand, Mr Greenblatt takes his readers step by step on how they could form a portfolio of stocks. This portfolio construction is his secret formula for successful investing that he shares with his readers.
His formula is simple and aims at selecting stocks that deliver high returns on assets and are trading at low PE multiples. After identifying the stocks for the portfolio he even gives the way to maintain the portfolio in order to maximize returns. But if one goes through the examples he has used, one thing becomes blatantly obvious. His formula for success works only when applied in a disciplined manner over a long term. If you think that you can follow a disciplined life of investing and want to earn high returns, then you should go ahead and read this book. by J Mulraj
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