Joel Greenblatt

Joel Greenblatt

Last Update: 2014-08-15

Number of Stocks: 980
Number of New Stocks: 201

Total Value: $7,990 Mil
Q/Q Turnover: 42%

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

Joel Greenblatt Watch

  • Dover Spin-Off Analysis

    As I analyzed the investment decisions that I have made last year, I’ve come to realize that the one that made me most money and the one that would have made me a lot of money had I not been sucking my thumbs while I should be acting are both spin-off situations. Come to think of it, there were actually a good amount of spin-offs last year, but I only took the time and effort to analyze a few. As Joel Greenblatt noted, “The spin-off process itself is a fundamentally inefficient method of distributing stock to the wrong people.” If the extra profits are inherently built into the system, why not spend more time fishing in this area? Therefore, I plan to dig a little bit more into spin-offs during 2014.

    In this article, I will analyze a spin-off opportunity that I am currently watching closely. The final details have not come out yet but by preparing ourselves to the greatest extent, we will be ready to act when the opportunity comes.


  • New Magic Formula Stocks From Joel Greenblatt: URS, Nabors Industries, Pilgrims Pride, NeuStar, Tyson Foods

    Renowned value investor, the inventor of magic formula investing, Joel Greenblatt just reported his third quarter portfolio. His magic machine is in full swing as he bought a lot of new stocks, and added to the existing ones. Since incepted in May 2009, his US Value Direct Composite portfolio has outperformed the S&P 500 by 24%.

    As of 09/30/2013, Gotham Capital owns 881 stocks with a total value of $3.1 billion. These are the details of the buys and sells that have the impact to portfolio of more than 0.2%.  

  • Cheesecake and Baked Goods Fight over Market Leadership

    The $31 billion fast-casual restaurant industry is a viable option for most middle-class citizens with a knack for cuisine. Between Mexican grills, quick service diners and bakery-cafes, the variety is endless. However, the Cheesecake Factory (CAKE) and Panera Bread Company (PNRA) demonstrate that market expansion and management are key elements to success in the industry.

    [b]Cheesecake Doesn’t Make the World Go Round  

  • Why You Shouldn’t Overlook These Fast Food Giants

    The quick service restaurant industry has been growing consistently, since the day McDonald’s Corporation (MCD) appeared in 1940. Over 70 years have passed, and the number of chain restaurants has increased vastly. Despite intense market competition, other players have risen to the challenge and succeeded, like Dunkin Brands Group Inc. (DNKN). So let’s take a look at where these two companies currently stand.

    [b]Hamburgers and Coke Are a Safe Bet  

  • How to Seek a Winner in the Toy Industry

    The toy industry is known for high returns on invested capital, increasing dividend payouts, and constant share buybacks. However, there are also low barriers to entry that make for fierce competition while companies push for a greater market share. Hasbro (HAS) and Mattel (MAT) are the two largest players in the $22 billion U.S. toy industry, and are constantly reinventing themselves to maintain a leading position. As customer preferences change, largely due to the predominant role technology has acquired, these two firms have adapted differently to the changing scenario.

    [b]An Industry Giant Struggling to Adapt to a New Audience  

  • Who Is the Winner in an Apparel Battle? Could It Be You?

    Apparel brands are increasing their investments in company-owned retail, new product lines, e-commerce and international expansion. The S&P Apparel, Accessories & Luxury Goods Index advanced 23.4% year to date. So let's take a look at two companies in the apparel sector and see which one is doing better and thus stands as the best investment.

    Abercrombie & Fitch Co. (ANF) specializes in lifestyle branding and operates over 1,000 retail apparel stores across four brands. This apparel retailer focuses on improving sales via new brands, store expansion, comparable store sales increases and e-commerce. A company key driver is the ability to develop and grow casual luxury youth apparel/lifestyle brands in a difficult retail environment where the firm has little protection to its position. However, unemployment rates for teenagers are a factor to consider when assessing the business.  

  • Two Manufacturing Giants Set for Long-Term Growth

    Consumer goods manufacturing giants such as Unilever PLC (UL) and Procter & Gamble Co (PG) benefit from the global diversification of their operations. While Europe is still suffering from macroeconomic problems, emerging markets have shown strong growth rates, allowing the companies to offset weak performance at other regions. However, as developing markets grow at an accelerated pace, the elevated demand for raw materials has led to short-term constraints. Less exposure to the European market and cost-cutting initiatives in emerging markets leaves Procter & Gamble in a better position than Unilever PLC looking forward.

    Uncertainties Tarnish Growth Prospects  

  • Joint Venture: Value Proposition? A Look at the Aluminum Industry

    A main factor affecting demand for aluminum products is economic growth and, in particular, demand for durable goods. The three largest end markets for aluminum in North America are transportation, containers/packaging, and construction. If the price of aluminum in 2013 falls below 2012's levels, this will cause earnings to be lower. So let's take a look at two companies in this sector and see which one is doing better and thus stands as the best investment.  

  • Thinking Differently: The Most Important Contrarian Behavior

    “I skate to where the puck is going to be, not where it has been.” - Wayne Gretzky

    One of the most important skills that you can develop as an investor is the ability to think differently. This is a broad topic with many interpretations. I often talk about thinking differently here at BHI. When it comes to general philosophy or “investment theory” (as opposed to thinking about individual stock investments), I spend more time thinking about this topic than any other. In short, I’m referring to the ability to think in a contrarian manner.  

  • Bargains for Weekend Thrifters

    Heading into the weekend, thrifters can use the GuruFocus Guru Bargains feature to find treasures in every sector. Here’s a close-up look at are four diverse companies in medical care, real estate, tobacco, and restaurants that have dropped significantly since billionaires bought in the second quarter of 2013.
    Aviv REIT Inc. (AVIV) - Yield 3.20%   

  • Some Thoughts on Joel Greenblatt's Magic Formula and Its YTD Results

    "Value investing is simply figuring out what something is worth and paying a lot less for it" - Joel Greenblatt

    I often describe my investment philosophy as a synthesis of ideas from Ben Graham, Walter Schloss, Warren Buffett and Joel Greenblatt. At the core of my strategy is Graham and Schloss' quantitative methods for valuing stocks. It's far more difficult to make mistakes when you simply make obvious, simple decisions based on valuation. In each investment, I want to ensure I'm not taking on valuation risk. Many investors (including most value investors) overly complicate things and this can often lead to counterproductive results. That's why many smart guys get mediocre results. They try too hard.  

  • Magic Joel Greenblatt on a Spree in Second Quarter, Reduction Highlights

    Inventor of Magic Formula Investing, Joel Greenblatt of Gotham Capital made hundreds of trades in the second quarter of 2013. His portfolio currently lists 840 stocks, and 165 of them are new. The Gotham Capital portfolio lists a total value of $2.34 billion with a quarter-over-quarter turnover of 32%. Here’s a close-up look at six major reductions out of hundreds made by Joel Greenblatt in the second quarter:

    Sun Hydraulics Corp. (SNHY): Reduced  

  • Joel Greenblatt's Top Q2 Portfolio Increases

    Joel Greenblatt of Gothic Capital is often recognized for his invention of Magic Formula Investing, as the founder of New York Securities Auction Corporation and as the founder and managing partner of Gotham Capital. The following five companies are the five stocks that Greenblatt made the largest increase in holdings to during the first quarter.

    According to his quarterly filings, Greenblatt now holds 840 stocks valued at over $2.34 billion.  

  • How to Practice Valuation

    My favorite investment book is Joel Greenblatt’s “You Can Be a Stock Market Genius.” If you’re only going to read one book on investing – that’s the one to read. Others I’d recommend are: The Intelligent Investor, One Up on Wall Street, Beating the Street, and There’s Always Something to Do.

    Why? What do these books have in common?  

  • How to Read (Good Writing)

    Just like my last article wasn’t really about how to read bad writing, today’s isn’t really about how to read good writing. It’s about how to read writing you want to read. It’s about enjoyable investment reading. The reading of classics. Not the reading of 10-Ks. I’ll mostly stick to discussing these six guys:

    1. Warren Buffett  

  • President and CEO of Actuant Corp Bob C. Arzbaecher Sold 98,390 Shares

    Actuant Corporation was incorporated in 1910 as a Wisconsin corporation. The company is divided into four divisions: Industrial, Energy, Electrical and Engineered Solutions. Energy sales and services are provided to customers in emerging markets, as well as in the North Sea, Middle East, South America, China, Asia, Gulf of Mexico and Canada. Actuant Corp has a market cap of $2.55 billion; its shares were traded at around $34.94 with a P/E ratio of 26.00 and P/S ratio of 1.70. The dividend yield of Actuant Corp stocks is 0.10%. Actuant Corp had an annual average earnings growth of 3.5% over the past 10 years.

    President and CEO of Actuant Corp (ATU) Bob C. Arzbaecher sold 98,390 shares on July 15, 2013 at an average price of $35.3. The total transaction amount was $3,473,167.  

  • The Perils of ROC Investing

    In recent years, proponents of value investing have placed a much greater emphasis on calculating return on capital (ROC). The concept is supported by the famous Buffett quote: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” According to Buffett, he came to that conclusion sometime after be purchased See's Candy at a sizable premium to its tangible assets. Prior to that time, "The Oracle" had concentrated on purchasing companies at sizable discounts to their tangible book values. Buffett credits his longtime confidant Charlie Munger for assisting him in internalizing that epiphany.

    The concept was further etched into the value psyche when Joel Greenblatt created his "Magic Formula" which described the importance of ROC in his investing classic: "The Little Book That Beats the Market." Greenblatt's simple edict proposed that investors could outperform the overall market by adhering to two simple concepts. Specifically, investors should focus on purchasing equities which were fairly priced (in terms of pretax earnings yields) and exhibited high rates of return on invested capital. In other words, it was the return rate of the capital invested in a business that mattered, rather than the price per share of the capital in the form of a discount to book value. The assumption is that value was best represented by a company’s efficiency in generating profits as opposed to the merely relying on the discount at which the assets could be purchased.  

  • Business Outlook India Interviews Joel Greenblatt

    Business Outlook India recently interviewed investing great and author Joel Greenblatt:


  • 'Magic Formula' Inventor Joel Greenblatt New Buys Rundown

    Joel Greenblatt believes that anybody can invest like a pro and invented a famous “magic formula” to ensure – or at least enhance the probability of – success for non-professionals. The basics of his formula investing technique involve purchasing 30 companies with high earnings yield and high return on capital, and selling after a year.

    Greenblatt’s portfolio at his hedge fund, Gotham Capital, had high turnover of 29% in the first quarter. His $1.97 billion portfolio contains 822 stocks total, of which 187 are new picks last quarter. The five largest of these are as follows.  

  • Does the Magic Formula Really Work?


    That’s what you need to beat the market and that’s what the Magic Formula is supposed to do.  

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