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The Little Book That Beats the Market

in: Investing
Summary:

The book introduces the "Magic Formula," a strategy for stock market investing that focuses on buying good companies at bargain prices. It emphasizes the importance of purchasing shares of high-return businesses when they are available below their true value and provides a step-by-step approach for individual investors to apply this methodology.

Key points:

1. Magic Formula Investing: The book presents a method for investing in undervalued, high-return companies based on their return on capital and earnings yield.

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