FREE DOWNLOAD You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock CLICKHEREhttp://mds.softebook.xyz/?book=0684840073. The Paperback of the You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of. You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock. You Can Be a Stock Market Genius has 3,316 ratings and 99 reviews. Pushkar said: So glad that I am a stock market genius now. Trivia About You Can Be a Stoc. No trivia or quizzes yet. Leggi You Can Be a Stock Market Genius Uncover the Secret Hiding Places of Stock Market P di Joel Greenblatt con Kobo. You Can Be a Stock Market Genius e. Book di Joel Greenblatt - 9. A comprehensive and practical guide to the stock market from a successful fund manager—filled with case studies, important background information, and all the tools you’ll need to become a stock market genius. Fund manager Joel Greenblatt has been beating the Dow (with returns of 5. And now, in this highly accessible guide, he’s going to show you how to do it, too. You’re about to discover investment opportunities that portfolio managers, business- school professors, and top investment experts regularly miss—uncharted areas where the individual investor has a huge advantage over the Wall Street wizards. Here is your personal treasure map to special situations in which big profits are possible, including. Read Online you can be a stock market genius uncover the secret hiding places of stock market profits, you can be a stock market genius uncover the secret hiding places of stock market profits PDF. You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt, Paperback Chapter 1. Follow the Yellow Brick Road — Then Hang a Right. It doesn't make sense that a book can teach you how to make a fortune in the stock market. After all, what chance do you have for success when you're up against an army of billion- dollar portfolio managers or a horde of freshly trained MBAs? A contest between you, the proud owner of a $2. The well- heeled Wall Street money managers and the hotshot MBA's don't have a chance against you and this book. No, you won't find any magic formula in chapter 8, and this isn't a sequel to How to Succeed in Business Without Really Trying, but if you're willing to invest a reasonable amount of time and effort, stock market profits, and even a fortune, await. Okay: What's the catch? If it's so easy, why can't the MBAs and the pros beat your pants off? Clearly, they put in their share of time and effort, find while they may not all be rocket scientists, there aren't many village idiots among them either. As strange as it may seem, there is no catch. The answer to this apparent paradox — why you potentially have the power to beat the pants off the so- called market . Well, it's good news, that is, if you haven't yet squandered tons of time and money at a business school in the single- minded quest for stock market success. In fact, the basic premise of most academic theory is this: It is not possible to beat the market consistently other than by luck. This theory, usually referred to as the efficient- market or . In effect, since stocks are more or less efficiently priced (and therefore, you can't consistently find bargain- priced stocks), it is not possible to outperform the market averages over long periods of time. Although exceptions (e. January effect, small size effects and low price/earnings strategies) are covered briefly by the academics, most of these . In other words, if you muddle through complex mathematical formulas and throw in a little calculus and statistical theory along the way, you stand a pretty good chance of matching the performance of the popular market averages. While there are plenty of other bells and whistles, the message is clear: You can't beat the market, so don't even try. Thousands of MBA's and Ph. D.'s have paid good money for this lousy advice. There are two reasons not to accept the basic teachings of the professors. First, there are some fundamental flaws in the assumptions and methodology used by the academics — flaws we'll look at briefly later on, but which are not the central focus of this book. Second, and more important, even if the professors are generally correct and the market for stocks is more or less efficient, their studies and conclusions do not apply to you. Obviously, most of Wall Street must also ignore the academics because the whole concept of getting paid for your investment advice, whether through commissions or investment advisory fees, doesn't square too well with the idea that the advice really isn't worth anything. Unfortunately for the professionals, the facts would seem to support the conclusions of the academics. If academic theory held true, you would expect the long- term record of pension and mutual- fund managers to equal the performance of the market averages reduced by the amount of the advisory fee. In a slight deviation from efficient- market theory, the professionals actually do approximately 1 percent worse per year than the relevant market averages, even before deducting their management fees. Does the theory that markets are . Bob is in charge of $1. U. S. For some perspective, if you went to the racetrack and placed a bet with $1. World Trade Centers high (needless to say, a bet that would almost certainly kill the odds on your horse). According to Bob, the bottom line and the measure of his success is this: How does the return on his portfolio stack up against the return of the Standard & Poor's 5. In fact, Bob's record is phenomenal: over the past ten years his average annual return has exceeded the return of the S& P 5. At first blush, the word . Though it is true that after twenty years of compounding even 2 percent extra per year creates a 5. Bob's returns are phenomenal. Bob's performance is impressive because in the world of billion- dollar portfolios, this level of excess return is incredibly hard to come by on a consistent basis. Some quick calculations help expose the limitations imposed on Bob by the sheer size of his portfolio. Imagine the dollar investment in each stock position when Bob sets out to divvy up $1. To create a 5. 0- stock portfolio, the average investment in each individual stock would have to be approximately $2. There are approximately 9,0. New York Stock Exchange, the American Stock Exchange, and the NASDAQ over- the- counter market combined. Of this number, about 8. If we assume Bob does not care to own more than 1. Bob will end up with in his portfolio will fall somewhere between 5. If he chooses to expand the universe from which he chooses potential purchase candidates to those companies with market capitalizations below $1 billion, perhaps to take advantage of some lesser followed and possibly undiscovered bargain stocks, his minimum number could easily expand to over 2. Intuitively, you would probably agree that there is an advantage to holding a diversified portfolio so that one or two unfortunate (read . On the other hand, is the correct number of different stocks to own in a . Even if you took the precaution of owning 9,0. This risk, known as market risk, would not have been eliminated by your . This type of risk can arise when a company's factory burns down or when a new product doesn't sell as well as expected. By not placing all your eggs in a buggy- whip, breast- implant, pet- rock, or huckapoo- sweater company, you can diversify away that portion of your risk that comes from the misfortunes of any individual company. Statistics say that owning just two stocks eliminates 4. This type of risk is supposedly reduced by 7. Without quibbling over the accuracy of these particular statistics, two things should be remembered: 1. After purchasing six or eight stocks in different industries, the benefit of adding even more stocks to your portfolio in an effort to decrease risk is small, and. Overall market risk will not be eliminated merely by adding more stocks to your portfolio. From a practical standpoint, when Bob chooses his favorite stocks and is on pick number twenty, thirty, or eighty, he is pursuing a strategy imposed on him by the dollar size of his portfolio, legal issues, and fiduciary considerations, not because he feels his last picks are as good as his first or because he needs to own all those stocks for optimum portfolio diversification. In short, poor Bob has to come up with scores of great stock ideas, choose from a limited universe of the most widely followed stocks, buy and sell large amounts of individual stocks without affecting their share prices, and perform in a fish bowl where his returns are judged quarterly and even monthly. Luckily, you don't. The Secret To Your Fortune. Since Bob clearly has his hands full, where can an investor turn for insight into making a fortune in the stock market? For better or worse, all roads appear to leave us at the doorstep of my in- laws. As avid collectors, they seek out works that will give them joy to own and live with on a daily basis. As closet capitalists, they look for undiscovered or unrecognized works of art or antiques that they can buy at prices far below true value. When in capitalist mode, the in- laws follow a very simple strategy. Whether they find a beautiful specimen of antique furniture at Podunk Fine Antiques & Tractor Parts or an impressionist painting from Grandma Bagodonuts' attic, they ask themselves only one question before buying. Are there comparable pieces of furniture or paintings that have recently sold at auction (or to dealers) at prices far above the potential purchase price? It's truly that simple, although we can probably learn more from the questions they don't ask. Whether the in- laws can or cannot predict the future is beside the point; they don't have to — they already know how to profit from studying the present. That doesn't mean their knowledge of art and antiques doesn't help them to make money, but many people can acquire that same knowledge. Their edge comes from taking this knowledge and applying it in places off the beaten path. While these places are tougher to find, once found, less competition from other informed collectors creates an opportunity for them to find . If you spend your energies looking for and analyzing situations not closely followed by other informed investors, your chance of finding bargains greatly increases. The trick is locating those opportunities. It's like the old story about the plumber who comes to your house, bangs on the pipes once, and says, . Knowing where to bang — that's ninety- five dollars. With that in mind, let's uncover some of the secret hiding places of stock- market profits.
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