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Title: read at the bookstore!
Review: I didn't want to buy this book because it could be read in 2 and a half hours at the book store. The book is about 150 pages and about 5 of them are worth reading. If you just read the appendix you can save yourself a lot of time because that is the whole book. The rest of the book is the author trying to be cute and telling stupid stories.The author says if you buy stocks with high earnings yields and return on capital you will beat the market. However, he uses EBIT/enterprise value for the earnings yield. I don't know why he doesn't use free cash flow instead of EBIT. The author also tells you to turnover 100% of your portfolio each year, but ignores taxes when he shows the results for his "magic formula." He also ignores transaction costs (especially important for those that have small sums of money or don't use a discount broker).If his magic formula works then it works and it is hard to argue with facts. However, save yourself the money and read it at the book store.
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