Joel Greenblatt

Joel Greenblatt

Last Update: 2014-11-14

Number of Stocks: 970
Number of New Stocks: 186

Total Value: $10,053 Mil
Q/Q Turnover: 45%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Joel Greenblatt Watch

  • Hedge Fund Star Joel Greenblatt Discusses His Radical Change In Investment Approach

    As value investors, many of us follow the lead of our hero Warren Buffett (Trades, Portfolio). That lead is to manage a concentrated portfolio of high conviction ideas.


    As Buffett would say, "Why put money in your 20th best idea when you could put more into your very best idea?"

      


  • Guess Continues Trading Far Below its 52-Week High

    In this article, let's take a look at the intrinsic value of Guess? Inc. (GES), a $1.85 billion market cap company, which is one of the most popular brands in the U.S. apparel sub-industry.


    Key drivers

      


  • 6 Useful Categories of Stocks

    When searching for GARP and ten-bagger opportunities, it's worth using a mental framework to categorize any stock into. This is something Lynch described in his book One Up On Wall Street.


    A couple of considerations before categorizing your stocks:

      


  • Campbell Soup's ROE is Really Attractive

    In a previous article, titled “A Top Growing Soup Company”, we saw that Campbell Soup Company (CPB) has a current ROE of 56.86% which is higher than the one exhibit by the industry median. Although its peers, such as: Pilgrims Pride (PPC), Tyson Foods (TSN) and McCormick (MCK) have good levels, Campbell surpasses those levels. So, in this article we are going to analyze it according to a DuPont Analysis.


    ROE is calculated as net income applicable to common shares divided by the average book value of common equity: ROE = Net Income / Av. Book Value

      


  • Guru Joel Greenblatt Gives Back


    “For unto whomsoever much is given, of him shall much be required.” – Luke 12:48

      


  • A Top Growing Soup Company

    In this article, let's take a look at Campbell Soup Company (CPB), a $13.44 billion market cap company, which is a major producer of branded soups and other grocery food products.


    Soup and more

      


  • Joel Greenblatt Shares His Stock Market Secrets To Success

    Joel Greenblatt (Trades, Portfolio) has an incredible track record as an investor.


    Steve Forbes sits down with him and they discuss how Greenblatt invests.

      


  • Reasons to Invest in AutoZone

    In this article, let's take a look at Memphis-based AutoZone Inc. (AZO), a $17.49 billion market cap company, which is a retailer of automotive parts and accessories.


    Interamerican Motor Corporation acquisition

      


  • Hedge Fund Legend Joel Greenblatt - Writing A Bigger Book

    Every year, when Joel Greenblatt (Trades, Portfolio) kicks off his value and special-situation investing class at Columbia Business School, he makes his students a guarantee. "If they are good at valuing businesses, the market will agree with them, typically within two or three years," says Greenblatt, who has been an adjunct professor since 1996.


    While he can't make any such guarantees to investors, his track record lends validity to this thesis. Using an über-concentrated deep-value approach, the hedge fund he founded in 1985 produced 34% average annual gains, after fees and expenses, for the first decade. At the end of 1994, Greenblatt and his longtime partner, Rob Goldstein, concluded that their growing asset base would impede future returns because their approach was so narrow. They returned shareholders' money and stopped taking outside investments—though they kept their staff and continued to manage their own capital.

      


  • New Magic Formula Stocks From Joel Greenblatt: CBI, DAL, GILD, MNST, ROST, LUV

    Hedge fund manager, the inventor of “Magic Formula” Joel Greenblatt (Trades, Portfolio) just reported his second quarter portfolio at Gotham Asset Management, LLC. He reshuffled his portfolio dramatically during the quarter, and bought Chicago Bridge & Iron Company, Delta Air Lines Inc, Towers Watson & Co, Gilead Sciences Inc, Monster Beverage Corp, Teradata Corp, Intuit Inc, Xerox Corporation, Ross Stores etc during the 3-months ended 06/30/2014, according to the most recent filings of his investment company, Gotham Asset Management, LLC.  


  • Buffett’s PetroChina Investment: Finding Large Gaps Between Price & Value

    “You don’t have to know a man’s exact weight to know that he’s fat.” - Ben Graham


    I was reading through some notes from the 2008 Berkshire Hathaway Annual Meeting and one of the questions grabbed my attention. The question was pertaining to Warren Buffett (Trades, Portfolio)’s decision to purchase stock in PetroChina back in 2002. Basically, the questioner was surprised that Buffett made such a sizable investment after a seemingly small amount of due diligence saying “all you did was read the annual report… Wouldn’t you want to do more research?”

      


  • To Bite or Not To Bite: That´s Luis Suarez and Adidas´ Question

    In this article, let´s look at Adidas AG (ADDYY), the German multinational corporation that designs and manufactures sports shoes, clothing and accessories based in Herzogenaurach, Bavaria, which spent approximately $70M to sponsor the FIFA World Cup Brazil 2014.


    Adidas logo is prominently displayed throughout the World Cup and is also the official ball provider “The Brazuca”.

      


  • Greenblatt Discloses Three of His Short Holdings

    In an interview on CNBC last Thursday, Joel Greenblatt (Trades, Portfolio), Columbia professor and CIO of Gotham Asset Management, briefly discussed his strategy. Many people are aware of his Magic Formula strategy from his book, “The Little Book that Beats the Market.” The Magic Formula is designed to give the retail investor a simple investing strategy to follow. It is based on buying companies with high returns on capital (ROC) and earnings yields and rebalancing once a year. For the three long/short funds that he manages at Gotham Asset Management, he has a higher level of scrutiny in his investments. According to an interview with Morningstar in October, it took his team six to seven years to research all of the largest companies and be able to update them on a quarterly basis as new information comes out. His research involves going through every balance sheet, income statement, and cash flow statement and making adjustments from what the companies are reporting and what the economic reality is.


    His strategy as described in the interview includes looking at the largest 2,000 companies in the U.S. and ranking them based on their discount to their assessment of value. He buys the 300 cheapest stocks and shorts the 300 most expensive stocks. His long portfolio can be followed at GuruFocus (Joel Greenblatt – Stock Picks). The difficulty is finding the stocks that he is short since they are not required to be disclosed. On CNBC he listed off three of them: Stratasys Ltd. (SSYS), Carnival Corp (CCL) and Salesforce.com Inc. (CRM). He says that these companies are eating through cash and destroying capital as they invest.

      


  • Joel Greenblatt’s Forgotten Original Magic Formula

    Did you know that long before Magic Formula investing went mainstream, Joel Greenblatt (Trades, Portfolio) was developing and testing an even more powerful investment technique?

    Joel Greenblatt (Trades, Portfolio): A Beautiful (Investment) Mind

      


  • Weekly Three-Year Low Highlights: LULU, BLOX, RNF, BEBE

    According to GuruFocus list of three-year lows, Lululemon Athletica Inc., Infoblox Inc., Rentech Nitrogen Partners LP, and bebe Stores Inc. have all reached their three-year lows.


    Lululemon Athletica Inc. (LULU) Reached the Three-Year Low of $43.16

      


  • NEW SITE FEATURE: 10-Year Median Scans

    GuruFocus has always delievered the most vast offering of equity research tools available on the market. Last year we introduced the All-In-One Guru Screener. It has been met with immensely positive feedback and has quickly become the go-to scanner for sophisticated investors.


    To further improve its fundamental search capabilities, we have added 10-year median options to several of the scan metrics. Return on Assets (ROA), Return on Equity (ROE) and Joel Greenblatt (Trades, Portfolio)’s Return on Capital (ROC) have been existing features since inception. The easy-to-use drop down menus allow users to select minimum and/or maximum values by which to filter a list of qualifying securities.

      


  • Importance of ROIC Part 1: Compounders and Cheap Stocks

    A while back, I posted a couple articles on return on invested capital (ROIC) along with some comments on Joel Greenblatt (Trades, Portfolio)’s Magic Formula. These posts attracted a lot of comments and email questions, so I wanted to post some more thoughts on the topic of compounding generally, and maybe ROIC more specifically. Here are some links to posts that are somewhat related to this topic:




  • Joel Greenblatt's Gotham Capital Top 5 New Stocks

    Joel Greenblatt (Trades, Portfolio) is the developer of the famous investing strategy for the everyday person, the “Magic Formula.” He also along with a partner manages a hedge fund called Gotham Funds. The stock selection process at the fund involves valuing all U.S. large and mid-cap companies, then taking positions in those trading at the greatest discounts and shorting the most overvalued, controlling for risk. They describe their views as follows:

    “We believe that although stock prices often react to emotion over the short term, they generally trade toward fair value over the long term. Therefore, if we are good at identifying mispriced businesses (a share of stock represents a percentage ownership stake in a business), the market will agree with us...eventually. For an individual stock selection, we believe the waiting period for the market to get it “right” is no more than 2 or 3 years in the vast majority of cases. For a portfolio of stocks, we believe the average waiting period can often be much shorter.”  


  • Caesars Isn’t Giving Up, but Is It Enough to Turn Profits Around?

    In the last article I wrote about Caesars Entertainment Corp (CZR), I pointed out that the company’s profits haves declined significantly, due to several factors like the licensing proliferation in the U.S. and the 2009 recession, which resulted in strong revenue declines throughout 2012. Furthermore, I was bearish about the casino’s ability to regain its financial strength, given its lack of free cash flow and immense debt load. With investment gurus like Paul Tudor Jones (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) selling out or reducing their shares in the company, it seems as though not much has changed in the past months. But let’s take a look at the Apollo Global Management LLC (APO) controlled casino operator and see if there might be an upside anytime soon.


    Is a New Acquisition Really a Good Idea?

      


  • Technological Innovation Will Ensure a Profitable Future for This Auto Parts Supplier

    With safety regulations getting stricter for automotive manufacturers, auto-parts suppliers which manufacture safety automotive systems and components are avid to gain profit from this context. This is the case of multibillion dollar auto-parts manufacturer TRW Automotive Holdings Corp (TRW). The company focuses on designing, and manufacturing active and passive safety automotive products for OEMs and the aftermarket. Furthermore, TRW has four business segments: the Chassis Systems segment, the Occupant Safety Systems segment, the Automotive Components segment, and the Electronics segment. Each of this operating businesses are respectively responsible for 66%,19%,11% and 4% of sales.


    The Chassis segment focuses on manufacturing products related to brake and steering modules, as well as on linkage and suspension. In addition, the Occupant Safety Systems segment manufactures airbags, seatbelts and restrain systems. As for the Automotive Components segment, it produces body controls and some engine components as valves. Finally, the Electronic segment focuses on the design of electronic components for safety systems, chassis, powertrain and driver assistance. With a 2013 revenue of $17.4 billion, let me show you why this company is a great investment opportunity.

      


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