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Strategies & Market Trends : Greenblatt's Little Book That Beats The Market -- Ignore unavailable to you. Want to Upgrade?


To: pcyhuang who wrote (112)9/23/2006 1:45:58 AM
From: Spekulatius  Read Replies (1) | Respond to of 218
 
From your experience of using Greenblatt's Little Book, what is the ideal stock's market capitalization breakpoint in doing the search?

As small as feasible. Greenblatt notes in his book that applying his formula to small caps yields better performance for small caps than for large caps, even though he notes that the formula works pretty well for large caps as well.

Makes perfect sense. Small cap market are much less efficient than large caps.