Joel Greenblatt

Joel Greenblatt

Last Update: 08-15-2016

Number of Stocks: 935
Number of New Stocks: 244

Total Value: $8,342 Mil
Q/Q Turnover: 35%

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

Joel Greenblatt Watch

  • Calculating the Return on Incremental Capital Investments

    “Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.”Warren Buffett (Trades, Portfolio), 1992 Shareholder Letter

    I received a lot of feedback, comments and a few questions after Connor Leonard’s guest post last week. Connor’s write-up was very well articulated, and deservedly received much praise. There were a few questions which we tried to address in comments and email responses, but one comment that came up a few times was: how do you calculate the return on reinvested capital?  

  • Joel Greenblatt Bets on eBay, Intel, Biogen

    Joel Greenblatt (Trades, Portfolio) is founder and managing partner of Gotham Asset Management LLC. He is known for the invention of Magic Formula Investing and founded the New York Securities Auction Corporation (NYSAC).

    The guru bought 859,283 shares in United Technologies Corp. (UTX) with an impact of 0.96% on the portfolio.


  • Top 10 Books for the New Investor

    Everybody has to start somewhere, and oftentimes people find the idea of investing their hard-earned money by themselves to be a bit intimidating.

    Sorting out a starting place can be difficult as well with the overwhelming amount of information out there today. Well look no further; these books have you covered. Perfect for the beginner investor but valuable for all investors, these resources will leave you confident and eager.


  • David Abrams' Top Trades of 1st Quarter

    David Abrams (Trades, Portfolio) founded Abrams Capital Management, which oversees nearly $8 billion in assets across three funds. During the first quarter he traded the following stocks.

    He exited his positions in Cleco Corp. (CNL) and Manitowoc Co. Inc. (MTW) but acquired stakes in NorthStar Asset Management Group Inc. (NSAM) and NorthStar Realty Finance Corp. (NRF).


  • Kyle Bass Purchases Stake in Clovis Oncology

    During the first quarter guru Kyle Bass (Trades, Portfolio) purchased 100,000 shares of Clovis Oncology Inc. (NASDAQ:CLVS).

    Clovis Oncology is a biopharmaceutical company that is headquartered in Boulder, Colorado. The company focuses on acquiring, developing and commercializing cancer treatments in the U.S., Europe and other international markets. The company's development programs are targeted at specific subsets of cancer, combining personalized medicine with companion diagnostics to direct therapeutics to those patients who are the most likely to benefit from them.


  • Baxter International Officer Invests in Stake

    Jose (Joe) Almeida (Insider Trades), CEO and chairman of the board of Baxter International Inc. (BAX), acquired 11,691 shares of the company on May 23.

    The average price per share was $42.75 for a total transaction of $499,790. Baxter International is a worldwide health care company that provides renal and medical products, including intravenous (IV) solutions, systems and administrative sets, IV infusion parenteral nutrition, perioperative care and home and in-center dialysis. The company has a market cap of $24.20 billion and a P/S ratio of 2.37.


  • Bernard Horn's 5 New Buys All Undervalued by Lynch Earnings Line

    The Polaris Global Fund headed by Bernard Horn (Trades, Portfolio) picked up five new holdings during the first quarter although only one was an international company, according to data reported by GuruFocus' Real Time Picks.

    Polaris’ investment process includes regularly screening a database of companies to narrow down undervalued stocks. Its criteria include those related to sustainable free cash flow, financial strength and liquidity. The process has largely worked well for Polaris – the fund has outperformed the MSCI World Index over each of the three-, five- and 10-year periods. Over the past three years ended the most recent quarter end, Polaris had an average annual return of 9.48% compared with 6.82% for the benchmark.


  • High Quality Guru Stocks: EMC, Bed Bath & Beyond

    According to GuruFocus’ All-in-One Screener, the following stocks have high business predictability ratings, and at least five gurus are shareholders in the companies.

    ResMed Inc. (RMD)


  • Frank Sands Sells Visa, Baidu, Alibaba

    Frank Sands (Trades, Portfolio) is chief executive officer and chief investment officer of Sands Capital Management, an investment management firm focused on investing in quality growth businesses throughout the world. He sold his shares in the following stocks during the first quarter:

    The guru closed his stake in FMC Technologies Inc. (FTI) with an impact of -1.04% on the portfolio.


  • Xerox Looks Like a 'Sell'

    Xerox Corporation (NYSE:XRX) is a $9.26 billion market cap company that is a media and entertainment conglomerate with diversified global operations in theme parks, filmed entertainment, television broadcasting and consumer products.

    Xerox operates in three segments: document technology, business services and other. Some months ago, the company announced its plan to split into two companies. The first one comprising the document technology corporations and the other comprising the business process outsourcing segment. The deal will generate about $2.4 billion in savings over the next three years in a strategic transformation program. The deal will be finished by the end of the year.


  • Joel Greenblatt Increases Stake in Corning by 5-Fold

    Guru Joel Greenblatt (Trades, Portfolio) increased his stake in Corning Inc. (NYSE:GLW) by adding 1,067,746 shares of the company in the first quarter.



  • Mr. Market Is Way Far Off On Wayfair

    I've been really intrigued by Wayfair (W) recently.

    It started with the purchase of a sleeper sofa last year.


  • Joel Greenblatt Reveals the Secret to Investing Success

    Do you know who Joel Greenblatt (Trades, Portfolio) is?

    If you don’t follow the investing industry, there’s a big chance you don’t know who he is. But if you want to become a better investor, he’s definitely someone you need to learn about.


  • Gap May Be Poised for a Comeback

    Gap (NYSE:GPS) is one of the most iconic American brands and still has a solid economic moat. The company has been downsizing and closing stores, making room for cash to be deployed into higher-profit channels like ecommerce.

    It ended the first quarter with 3,794 company-operated and franchise store locations with almost 38 million square feet of retail space covering well-known brands like Banana Republic, Old Navy, Athleta, Gap and Gap Kids.


  • Bearish Sentiment in Becton Dickinson's Stock

    Becton Dickinson & Co. (NYSE:BDX) is a $33.87 billion market cap company that provides a broad range of medical devices and diagnostic products used in hospitals, doctors' offices, research labs and other settings.

    The med-company is trading at $159.55. Analysts have a consensus $163.53 price target on the stock. Yahoo! (NASDAQ:YHOO) Finance estimates a one-year target share price at $166.9. Also, investors will be paid a dividend of $2.64 at the end of the year. The dividend yield is 1.65%, which tries to protect the purchasing power. Dividend investors often pay attention to the track record of dividends payments and favorable expectations regarding dividend growth for the next year. This company has paid dividends since 1926; during the past 13 years, the highest yield was 2.44%, the lowest was 1.05%, and the median was 1.77%. Now it is close to a five-year low.


  • It's Time to Sell Joy Global

    Don’t believe the analyst hype. Despite both BofA Merrill Lynch and Goldman Sachs upgrading Joy Global (NYSE:JOY) stock in recent weeks, the long-term outlook for the coal industry is bleak. It might not go to zero, but its size and use as an energy source is dwindling.

    The company’s new initiatives direct service, hard rock and industrial minerals, reduced capacity, inventory reductions, share buybacks, new product development and high-growth markets may prove effective but in the end will likely fail to produce value for shareholders.


  • On Diversification

    On Diversification​The age-old question of exactly how many stocks to hold is likely never going to be definitively answered. There are entire books, even courses, on the subject after all. Since portfolio construction is more of an art than a science, in this post I want to break down relevant studies, examine historical data and analyze some of the best investors in an attempt to come up with the optimal strategy. As always, please share your comments and thoughts below!

    Talking points


  • Growing EPS for Viacom, Western Digital, Fossil

    Companies with growing EPS are often a good investment as they can return a very good profit to investors. Here is a selection of the most undervalued companies, according to the DCF calculator, that have a five-year growing EPS.

    Earnings per share of Waddell & Reed Financial Inc. (WDR) grew by 14% over the last five years; according to the DCF calculator, the stock, at the price of $22.41, is undervalued and trading with a margin of safety of 70%.


  • Undervalued Stocks With Wide Margin of Safety

    The following stocks are trading with a wide margin of safety according to the DCF calculator, and some of them have a very low P/E ratio. GuruFocus' All-in-One Screener can be used to find similar stocks. 

    D.R. Horton Inc. (DHI) has a market cap of $11.67 billion and a GuruFocus’ business predictability rating of 1 star. The stock has a price of $31.6 with a forward P/E ratio of 12.30, and according to the DCF calculator is trading with a margin of safety of 43%. During the last 12 months, the price of the stock has risen by 10% and is now 4.53% below its 52-week high.


  • General Motors Among Undervalued and Low PE Stocks

    The following stocks are trading with low P/E ratios. Most of the companies are greatly undervalued, according to the DCF calculator.

    Visteon Corp. (VC) is trading with a P/E ratio of 1.5. According to the DCF calculator, the stock has a fair value of $16.48; it was trading at $76.83 Wednesday. That means it is overpriced by 361%. The price has dropped by 21% during the last 12 months and is now 37.56% below its 52-week high and 29.12% above its 52-week low.


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