You Can Be a Stock Market Genius: Joel Greenblatt - 1999

You Can Be a Stock Market Genius was written by American hedge fund manager and founder of Gotham Capital, Joel Greenblatt.

Making returns of over 50 percent annually, Joel Greenblatt presents an accessible guide for anyone who wished to learn how to profit from investing. His clever and well thought-out techniques have potential to be used as a how-to guide. In fact, many who used the techniques in this book ended up profiting when they foresaw the financial collapse.

“The strategy of putting all your eggs in one basket and watching that basket is less risky than you might think.”

Greenblatt also focuses on many areas in which individual investors have a specific advantage compared to investment experts. He provides an exceptional summary of opportunities particularly within corporate events. Special situations which are not ordinary in business present an excellent environment for an investment opportunity. These include spin-offs, restructuring, merger securities, rights offerings, recapitalizations, bankruptcies and risk arbitrage all of which individuals can capitalize on for their gain.

“So one way to create an attractive risk/reward situation is to limit downside risk severely by investing in situations that have a large margin of safety. The upside, while still difficult to quantify, will usually take care of itself. In other words, look down, not up, when making your initial investment decision. If you don’t lose money, most of the remaining alternatives are good ones.”

Clear and comprehensive, You Can Be a Stock Market Genius does just what it says on the cover. Although it is now over a decade old, all the information is still relevant and informative. With multiple examples and case studies, the book offers all the tools you need to work the investment market in your favor.