"Larry Swedroe, a principal and the director of research for Buckingham Strategic Wealth as well as an independent member of the BAM Alliance and author of the book "Your Complete Guide to Factor-Based Investing: The Way Smart Money Invests Today" has wrote a review on the well-known website ETF.com.
Larry: "Van Vliet and de Koning’s simple algorithm-based methodology is similar to the simple algorithm approach, or “magic formula,” presented by Joel Greenblatt in his book “The Little Book That Beats the Market.” (..) Both demonstrate that simple algorithms (which provide systematic approaches to gaining exposure to well-documented factors) have been able to outperform the vast majority of professional investors using their discretion. It’s the “machine is superior to man” story, the explanation being that man is subject to many biases that are difficult to overcome.
Summarizing the book, Van Vliet and de Koning conclude that the fact that low-risk stocks beat high-risk stocks is an inconvenient truth—inconvenient because it demonstrates that standard asset pricing models are wrong. For those interested in low-risk investing, reading “High Returns from Low Risk: A Remarkable Stock Market Paradox” is well worth the time.