Comments on: The Little Books Series: Which Ones Are Worthwhile Reads? http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/ Simple, applicable personal finance advice for the modern world Sat, 21 Nov 2009 22:03:21 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Doug http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-214486 Doug Fri, 28 Mar 2008 18:36:22 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-214486 Beats the Market not a proven methodology? If one actually reads the book instead of just the title, they will find detailed history of the application of this technique. It even shows there will be some times (as we have now) where the returns will be lower than market returns. This methodolgy is a pretty much the same as Greenblatt's mentor and most serious investors don't question Graham's approach. In fact Greenblatt and Buffet have both been highly successful with that approach. If one actuallly reads the older posts on the Yahoo groups, they will find countless examples of Greenblatt's technique producing very nice gains up until the November time frame. Beats the Market not a proven methodology? If one actually reads the book instead of just the title, they will find detailed history of the application of this technique. It even shows there will be some times (as we have now) where the returns will be lower than market returns. This methodolgy is a pretty much the same as Greenblatt’s mentor and most serious investors don’t question Graham’s approach. In fact Greenblatt and Buffet have both been highly successful with that approach. If one actuallly reads the older posts on the Yahoo groups, they will find countless examples of Greenblatt’s technique producing very nice gains up until the November time frame.

]]> By: Trent http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-213749 Trent Fri, 28 Mar 2008 02:40:57 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-213749 The reason that "Beats the Market" is flaky compared to the rest of the series is that it's not a proven methodology. The other four books all carefully describe methodologies that have been time-tested and proven. Greenblatt's book is based on a methodology he basically just invented - there's basically no evidence for it one way or another over the long haul yet. Given that the "Little Book" series is ostensibly about explaining time-tested investment strategies to the layperson, Greenblatt's entry is pretty obviously the flaky one in the series. The reason that “Beats the Market” is flaky compared to the rest of the series is that it’s not a proven methodology. The other four books all carefully describe methodologies that have been time-tested and proven. Greenblatt’s book is based on a methodology he basically just invented – there’s basically no evidence for it one way or another over the long haul yet. Given that the “Little Book” series is ostensibly about explaining time-tested investment strategies to the layperson, Greenblatt’s entry is pretty obviously the flaky one in the series.

]]> By: Doug http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-213646 Doug Fri, 28 Mar 2008 00:08:04 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-213646 I agree that the Value Investing book is perhaps the best of the bunch. The Beats the Market is not for those of "Simple Dollar" minds though. Apparently because Trent does not understand the concept, it must be flakey. The reason these "secrets" don't make everybody billionaires is almost everyone bails on a basically sound strategy like this during the inevitable down time. It seems most people really believe they should be able to get 20% returns every time. Simple Dollar people need to stick with mutual funds and count pennies while the rest of us ultimately count dollars coming in. Please stay away from Beats the Market! I agree that the Value Investing book is perhaps the best of the bunch. The Beats the Market is not for those of “Simple Dollar” minds though. Apparently because Trent does not understand the concept, it must be flakey. The reason these “secrets” don’t make everybody billionaires is almost everyone bails on a basically sound strategy like this during the inevitable down time. It seems most people really believe they should be able to get 20% returns every time. Simple Dollar people need to stick with mutual funds and count pennies while the rest of us ultimately count dollars coming in. Please stay away from Beats the Market!

]]> By: Mrs. Micah http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-213534 Mrs. Micah Thu, 27 Mar 2008 21:35:38 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-213534 I see those books all the time at work, they're pretty popular. I plan to read the Bogle one because I'm already a fan of his ideas/other books. I also might recommend it to people I'm trying to "convert." He is probably more persuasive than I am. I looked at the "beats the market" but it didn't really make sense. Also I don't trust anything that's marketed to beat the market...there are a bajillion of those books and if they were any good more people would be billionaires. I see those books all the time at work, they’re pretty popular. I plan to read the Bogle one because I’m already a fan of his ideas/other books. I also might recommend it to people I’m trying to “convert.” He is probably more persuasive than I am.

I looked at the “beats the market” but it didn’t really make sense. Also I don’t trust anything that’s marketed to beat the market…there are a bajillion of those books and if they were any good more people would be billionaires.

]]> By: Nicj http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-213212 Nicj Thu, 27 Mar 2008 16:50:24 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-213212 I don't think that Greenblatt's Magic Formula has been around long enough to determine whether or not it has market beating potential. For what reason do you find it flaky? <a href="www.magic-formula-investing.blogspot.com" rel="nofollow">Magic Formula Investing blog</a> I don’t think that Greenblatt’s Magic Formula has been around long enough to determine whether or not it has market beating potential. For what reason do you find it flaky?

Magic Formula Investing blog

]]> By: Miranda http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-211338 Miranda Wed, 26 Mar 2008 01:50:43 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-211338 Great list of books! I enjoy the value investing book, since it is what I'm about. Solid investments that are more likely to perform consistently over the long haul. And recover from stock market problems. Great list of books! I enjoy the value investing book, since it is what I’m about. Solid investments that are more likely to perform consistently over the long haul. And recover from stock market problems.

]]> By: Dan http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-211204 Dan Tue, 25 Mar 2008 21:19:44 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-211204 I apologize for this criticism. It would be easier to read this article without the redundant links. One link per title should be enough. (I realize some are internal links and some to Amazon...THAT's fine). I apologize for this criticism. It would be easier to read this article without the redundant links. One link per title should be enough.

(I realize some are internal links and some to Amazon…THAT’s fine).

]]> By: Nate http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-211126 Nate Tue, 25 Mar 2008 18:56:43 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-211126 I just finished Common Sense Investing and That Beats the Market. Both were interesting takes. Bogle, the Vanguard founder, is obviously very much about Index funds and he does a great job of making his case. His graphs were pretty powerful as well as the quotes at the end of each chapter from the big wigs of Wall Street. I kind of wish he would have brought in a few more elements of investing aside from index funds, but I did pick up a few tidbits here and there. Greenblatt's take in "Common Sense Investing" is written for his kids and I found it a nice explanation with his use of a chewing gum "dealer" as a fake business. Very understandable, if not simplified too much. Even with all of his advice, he does still recommend low-cost index funds for the average investor. And, interestingly, at the very end, he recommends that his kids not go into investing careers. Rather he says, put your money in something like low-cost index funds and contribute to your community and education instead. Stop worrying about money. At least that's a guy with his head in the right place. I just finished Common Sense Investing and That Beats the Market.

Both were interesting takes. Bogle, the Vanguard founder, is obviously very much about Index funds and he does a great job of making his case. His graphs were pretty powerful as well as the quotes at the end of each chapter from the big wigs of Wall Street.

I kind of wish he would have brought in a few more elements of investing aside from index funds, but I did pick up a few tidbits here and there.

Greenblatt’s take in “Common Sense Investing” is written for his kids and I found it a nice explanation with his use of a chewing gum “dealer” as a fake business. Very understandable, if not simplified too much.

Even with all of his advice, he does still recommend low-cost index funds for the average investor. And, interestingly, at the very end, he recommends that his kids not go into investing careers. Rather he says, put your money in something like low-cost index funds and contribute to your community and education instead. Stop worrying about money. At least that’s a guy with his head in the right place.

]]> By: The Weakonomist http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-211091 The Weakonomist Tue, 25 Mar 2008 17:37:18 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-211091 I read Bogle's in college, it was well put together. Its a shame the others were sold under a similar brand. There are way too many personal finance and investment books that say the same thing. I read Bogle’s in college, it was well put together. Its a shame the others were sold under a similar brand. There are way too many personal finance and investment books that say the same thing.

]]> By: Lisa http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-211080 Lisa Tue, 25 Mar 2008 17:16:08 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-211080 So many people have recommended the Benjamin Graham book I'm going to have to break down and buy it. Another book i really like is Jason Kelly's the Neatest Little Guide to Stock market Investing. It was very comprehensive, and did a great job describing the Legacy Worksheet used by investment clubs across the country. If you click on my name you can learn more about it. Lisa So many people have recommended the Benjamin Graham book I’m going to have to break down and buy it. Another book i really like is Jason Kelly’s the Neatest Little Guide to Stock market Investing. It was very comprehensive, and did a great job describing the Legacy Worksheet used by investment clubs across the country. If you click on my name you can learn more about it.

Lisa

]]> By: InvestEveryMonth.com http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-211066 InvestEveryMonth.com Tue, 25 Mar 2008 16:59:39 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-211066 I also agree that John Bogle's Little Book Of Common Sense Investing is the best of these. If you want to find the source of most of Bogle's ideas, read The Intelligent Investor by Benjamin Graham. It is a good book with most of the lessons being laid out that have led Bogle and Warren Buffet to success. I also agree that John Bogle’s Little Book Of Common Sense Investing is the best of these.

If you want to find the source of most of Bogle’s ideas, read The Intelligent Investor by Benjamin Graham. It is a good book with most of the lessons being laid out that have led Bogle and Warren Buffet to success.

]]> By: squawkfox http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-211048 squawkfox Tue, 25 Mar 2008 16:27:13 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-211048 If Bogle's "Little Book of Common Sense Investing" is anything like "The Bogleheads' Guide To Investing" I think it would be my top pick. Basically, invest for yourself, buy ETFs or index funds, track the index, keep your fees low, rebalance once a year, retire well. ;) If Bogle’s “Little Book of Common Sense Investing” is anything like “The Bogleheads’ Guide To Investing” I think it would be my top pick. Basically, invest for yourself, buy ETFs or index funds, track the index, keep your fees low, rebalance once a year, retire well. ;)

]]> By: Tyler @ Dividend Money http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-211000 Tyler @ Dividend Money Tue, 25 Mar 2008 14:28:53 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-211000 I have yet to read any of the little book series. Thanks for the pointer on where to start. I'm a value investor myself and have had some nice succcess with it thus far. I'm always hoping to pick up a couple more pointers to add to my arsenal. Thanks for the reviews! Tyler I have yet to read any of the little book series. Thanks for the pointer on where to start.
I’m a value investor myself and have had some nice succcess with it thus far.
I’m always hoping to pick up a couple more pointers to add to my arsenal.
Thanks for the reviews!
Tyler

]]> By: My Daily Dollars http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/comment-page-1/#comment-210995 My Daily Dollars Tue, 25 Mar 2008 14:15:35 +0000 http://www.thesimpledollar.com/2008/03/25/the-little-books-series-which-ones-are-worthwhile-reads/#comment-210995 Thanks for this great review! Once I finally dig out of debt and build an emergency fund, I want to start investing. I'll definitely check out Bogle's book. Thanks for this great review! Once I finally dig out of debt and build an emergency fund, I want to start investing. I’ll definitely check out Bogle’s book.

]]>