In 2021, Joel Greenblatt released an e-book that’s already been hailed as one of today’s most renowned classics in personal finance. Known as The Little Book That Still Beats the Market, this is the first book of its kind to be written in a single year. If you’re looking for an easy-to-read guide to investing and personal finance, this is it. There are no management secrets here, but more on that in a minute.
It’s called The Little Book That Still Beats the Market because it’s actually four books in one: A Business Financial Manual, The First Step to Financial Independence, Investing in Yourself, and Don’t Worry, Be Happy. In addition, there’s a single page that contains all of the book’s content, plus a synopsis and the conclusion. As you might expect, each of these books contains some information about the other. They’re not interconnected, but they are each detailed enough to give you an idea of what you’re getting into.
Joel started by explaining how he came to create the titles. He wanted them to reflect his personality, so he chose people from his childhood who were future millionaires. He also incorporated family stories and personal experiences from when he was a kid. The result is a unique take on a timeless subject. The result is a set of gems that anyone can read and learn from.
The First Step to Financial Independence covers what will happen if you don’t make a plan to reach financial independence. It starts with how easy it is to get into the groove of serious investing and then takes you through the pitfalls and stumbling blocks that prevent most people from becoming rich. This book describes the process of putting together a solid foundation. It explains how to invest your money so that you can generate an income that will support you through the process of learning how to become a millionaire. There is also a lot of good information about family planning and retirement.
The Little Book That Still Beats the Cash is similar in content to The First Step to Financial Independence, but it goes into more detail. There is a section on beating the market, a chapter on investing, and then a chapter on setting up a foundation. The end result is four chapters’ worth of information. Joel explains why some stocks are better than others. There is a good explanation of technical analysis and how it applies to investing.
Joel finishes The Little Book That Still Beats the Cash with a chapter on estate planning. This is a complex topic that doesn’t really have a simple answer. His experience as a real estate professional helps him explain the hurdles to achieving financial independence, but he does not lay out an easy path. This book ends up being a slightly more complicated version of The First Step to Financial Independence.
The Little Book That Still Beats the Cash might be a little too ambitious for most. Many financial independence gurus advise investing heavily right from the get-go, with the goal of turning a solid portfolio into a great portfolio over the long run. The book does make some waves when it comes to the dangers involved in beating the market. It describes cases where people were so burned by the loss of their initial investment that they wound up owing a company or person millions more than the actual value of their portfolio. This, of course, would lead to financial independence in the truest sense of the word. For many people, though, this isn’t a risk they are willing to take.
The Little Book That Still Beats the Cash is a quick read, especially for people who want to know how to beat the market. It offers a variety of stories that make for interesting reading. If you need a little bit of a boost to your knowledge level, then this is a good book for just that reason. It doesn’t promise overnight results, but if you follow the advice presented in this lively little guide, you should find that financial independence will come sooner than you might have expected.