To The Moon

$LITERACY CAPITAL PLC(BOOK.UK)$ 📚📖

Since reading is one of the best investments you can make, I thought I would recommend one of my all-time favourite investing books, and my recommendation below is in just one sentence, albeit a long sentence 😂, because "The Little Book That Beats the Market" by Joel Greenblatt, written by the legendary value investor who founded Gotham Capital in 1985 with $7 million from junk bond king Michael Milken and then casually turned $1,000 into $40,000 with mind-bending 50%+ annual returns over a decade (even outpacing Buffett) by concentrating 80% of his capital into just 6 to 8 deep value ideas hidden in the dusty corners of the market, reveals his brilliantly simple yet devastatingly effective “Magic Formula” for ranking stocks by earnings yield (EBIT divided by EV) and return on capital (EBIT divided by net fixed assets plus working capital), buying the top 20 to 30 stocks each year (while excluding ADRs, financials, utilities, and microcaps), a system that backtested an outrageous 30.8% annual return from 1988 to 2004 compared to the S&P 500’s 12.4%, though Greenblatt wisely admits it has become slightly less potent today, and if you want to see his full genius in action, his second book "You Can Be a Stock Market Genius" shows how he found pure gold in special situations like spinoffs, mergers, bankruptcies, rights offerings, and recapitalisations, for example buying LEAPS on Wells Fargo during the California real estate crash (when it was trading at just 4 times normalised earnings) and pocketing a 4 times return, or spotting Hudson City Bancorp’s mutual to stock conversion, grabbing it at just 68% of book value, and compounding at a ridiculous 60% annually for 4.5 years, all based on his core philosophy of staying small, thinking independently, concentrating bets, and avoiding the emotional stress of managing other people’s money (which is why he returned outside capital in 1995 before Gotham grew too large), later founding Gotham Asset Management in 2008 to run diversified strategies, and now spending his time managing money, teaching future market legends at Columbia, and giving generously through philanthropy, proving that reading the right book does not just make you smarter, it makes you richer.

May your curiosity remain insatiable, your knowledge compounding, and your journey illuminated by the wisdom of great minds, Cheers, BC 🍀🍀🍀

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