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

  • 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?

    Magic.

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


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  • Joel Greenblatt Says Apple, Google Are ‘Bargains’

    Great Interview with Joel Greenblatt.

      


  • Entropic Announces First Quarter Results and Large Insider Buys

    Insider Activity On May 3, two corporate officers of Entropic Communications made insider buys as the price of the stock hit a three-year low.

    Senior VP and General Counsel Lance Bridges bought 20,000 shares at an average price of $3.93. He spent a total of $78,600 on this buy. Bridges now holds on to at least 96,073 shares of Entropic.  


  • Magic Formula Formulator Joel Greenblatt’s Top 5 New Stock Picks

    Joel Greenblatt is author of the Magic Formula, professor at Columbia Business School and investor at Gotham Capital. He also just reported his fourth quarter 2012 portfolio. Updates include 184 new stock buys, for a 34% quarter-over-quarter turnover rate. Greenblatt’s largest new buys of the quarter art: Computer Sciences Corp. (CSC), Hillshire Brands Co. (HSH), Cubist Pharmaceuticals Inc. (CBST), Micros Systems (MCRS) and Cardinal Health Inc. (CAH).

    His portfolio is almost equally weighted at the top between technology and consumer cyclical, followed by healthcare.  


  • Magic Formula Guru Joel Greenblatt’s Q3 Portfolio Updates: Top New Buys Are Herbalife, Goodyear Tire and Marvell Technology

    Joel Greenblatt, founder of Gotham Asset Management LLC, has reported his third quarter portfolio updates, which totaled 668 transactions:

    Adds to Current Shares 217
    New Buys 170
    Reductions to Current Shares 159
    Sold Out 122
      


  • Weekly CEO Buys Highlights: GEL, WINA, LTS

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:

      


  • CEO of F5 Networks, Inc. (FFIV) John McAdam sold 50,000 Shares

    F5 Networks Inc. is a provider of integrated Internet traffic and content management solutions designed to improve the availability and performance of mission-critical Internet-based servers and applications. F5 Networks, Inc. has a market cap of $8.22 billion; its shares were traded at around $101.68 with a P/E ratio of 29.8 and P/S ratio of 7.1. F5 Networks, Inc. had an annual average earnings growth of 28.8% over the past 5 years.

    On August 16, 2012, President and CEO of F5 Networks, Inc. (FFIV) John McAdam sold 50,000 shares at an average price of $99.67. The total transaction amount was $4,983,500.  


  • Joel Greenblatt's Top Buys and Sells

    Investor Joel Greenblatt bought 192 new stocks in the second quarter for his 728-stock portfolio. His top new buys are: Tempur-Pedic International (TPX), Wells Fargo (WFC.WS), Wells Fargo (WFC), Lockheed Martin (LMT) and Huntington Ingalls Industries (HII). Greenblatt is also the founder of Gotham Capital, a Columbia professor and author of several investing classics.

    Tempur-Pedic International (TPX)  


  • August Magic Formula Newsletter Pick: A Company at 6x Earnings and a Dividend yield of 6%

    This month's Magic Formula Newsletter pick is trading at under 6x trailing earnings and currently sports a dividend yield of almost 6%.

    But those stats may actually understate just how attractive the company is. There are several clues that indicate the company is worth materially more than today's price. To highlight just a few  


  • Ceradyne: Excellent diversified addition to any long-term portfolio

    When investors hear that one of their holdings had a dismal quarter far below Wall Street’s expectations, their hearts sink to the very same depth. However, as value investors at heart, the reins of reason must be held to stay any short-term panic. With that in mind, Ceradyne (CRDN) recently announced earnings on July 24, 2012, with revenues and earnings far below analyst consensus. In addition, outlook was negatively revised. An in-depth examination of Ceradyne’s business model can be found via the following link: http://www.gurufocus.com/news/178574/ceradyne-ceramics-and-more-for-your-portfolio. As such, Ceradyne’s feasibility in a portfolio, at least for the short term, is neutral to risky, but remains a valuable stock to hold for the long term.

      


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