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

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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.

      


  • CEO of Dorman Products Inc. Steven Berman Sold 128,991 Shares

    CEO, 10% Owner of Dorman Products Inc. (DORM) Steven L. Berman sold 128,991 shares on 06/28/2012 at an average price of $23.48. The total transaction amount was $3,028,709. R&B, Inc. is a supplier of OE Dealer `Exclusive` automotive replacement parts, automotive hardware, brake products, and household hardware to the Automotive Aftermarket and Mass Merchandise markets. Dorman Products Inc. has a market cap of $837.9 million; its shares were traded at around $25.05 with a P/E ratio of 14.5 and P/S ratio of 1.6. Dorman Products Inc. had an annual average earnings growth of 13.4% over the past 10 years. GuruFocus rated Dorman Products Inc. the business predictability rank of 4-star.

    Steven Berman has been the CEO and Chairman of DORM since January 2011. Mr. Berman served as COO of Dorman Products from 2007 until 2011. From 1978 until 2011, Steven Berman has served as Secretary and Treasurer of the company, as well as its executive VP. He has been a director since 2007.  


  • Intrinsic Value ... Why Bother

    Calculating intrinsic value is great if it was dependable and possible to calculate accurately. The 1938 thesis by John Burr Williams, "The Theory of Investment Value," was groundbreaking and introduced us to fundamental analysis. He proposed calculating intrinsic value of a stock by discounting all future cash flows to the present. No argument, as investors we know this.

    But chances are we don't come close to the true present value as the future is speculative. Change any of the inputs and we get widely different present value calculations. The timing of future cash flows, growth rates, discount rates, future shares outstanding or future debt, terminal value and ultimately the market's interpretation of its risk and fair value.  


  • Ceradyne, Ceramics and More for Your Portfolio

    “As a soldier, I survived World War I when most of my comrades did not.” Lester B. Pearson  


  • Dividend Yield Doesn’t Work, What Does? Three Key Conclusions

    A recent study by Wes Gray and Jack Vogel, Dissecting Shareholder Yield, makes the stunning claim that dividend yield doesn’t predict future returns, but more complete measures of shareholder yield might hold some promise. Gray and Vogel say that, ”regardless of the yield metric chosen, the predictive power of separating stocks into high and low yield portfolios has lost considerable power in the last twenty years.”

    This seems to be part of a trend away from dividends and towards share repurchases, presumably for tax reasons:  


  • Man vs Magic Formula: Joel Greenblatt’s Value Investors’ Club vs His Little Book

    The only one fair fight in finance: Joel Greenblatt versus himself. In this instance, it’s the 250 best special situations investors in the US on Joel’s special situations site valueinvestorsclub.com versus his Magic Formula.

    Wes Gray and crew at Empiritrage have pumped out some great papers over the last few years, and their Man vs. Machine: Quantitative Value or Fundamental Value? is no exception. Wes et al have set up an experiment comparing the performance of the stocks selected by the investors on the VIC – arguably the best 250 special situation investors in the US – and the top decile of stocks selected by the Magic Formula over the period March 1, 2000 through to the end of last year. The stocks had to have a minimum market capitalization of $500 million, were equally weighted and held for 12 months after selection.  


  • Value Investor Improvement Tip #1: Settle for Cheap Enough

    People need practical advice on investing. And many of the articles I write are too theoretical. In fact, many of the questions people ask me are too theoretical.

    They want to know about a certain way to value a company – should they use today’s free cash flow yield, an estimate of future growth out 10 years and then calculate the compound annual stock price rise to reach the future price as if the stock trades at a normal P/E in 10 years, should they calculate net current asset value using the book value of current assets or discounting each of the assets to reflect what they’d realize in liquidation, and so on...  


  • Why Does an Equal-Weighted Portfolio Outperform Market Capitalization- and Price-Weighted Portfolios?

    Yesterday I took a look at the different ways of structuring an index suggested by Joel Greenblatt.

    Greenblatt finds that an equal-weight portfolio far outperforms a market capitalization weight portfolio.  


  • Equal Weight and Fundamental Indexing Beats The Market

    Joel Greenblatt’s rationale for a value-weighted index can be paraphrased as follows:

    • Most investors, pro’s included, can’t beat the index. Therefore, buying an index fund is better than messing it up yourself or getting an active manager to mess it up for you.
    • If you’re going to buy an index, you might as well buy the best one. An index based on the market capitalization-weighted S&P500 will be handily beaten by an equal-weighted index, which will be handily beaten by a fundamentally weighted index, which is in turn handily beaten by a “value-weighted index,” which is what Greenblatt calls his “Magic Formula-weighted index.”
    Yesterday we examined the first point. Today let’s examine the second.  


  • Value-Weighted Indexing: The Problem with Active Management

    Joel Greenblatt’s rationale for a value-weighted index can be paraphrased as follows:

    • Most investors, pro’s included, can’t beat the index. Therefore, buying an index fund is better than messing it up yourself or getting an active manager to mess it up for you.
    • If you’re going to buy an index, you might as well buy the best one. An index based on the market capitalization-weighted S&P500 will be handily beaten by an equal-weighted index, which will be handily beaten by a fundamentally weighted index, which is in turn handily beaten by a “value-weighted index,” which is what Greenblatt calls his “Magic Formula-weighted index.”
    Let’s examine each of these points in some more depth.  


  • Joel Greenblatt’s Solution to Value Investors’ Behavioral Errors

    Last week I looked at James Montier’s 2006 paper The Little Note That Beats The Market and his view that investors would struggle to implement the Magic Formula strategy for behavioral reasons, a view borne out by Greenblatt’s own research. This is not a criticism of the strategy, which is tractable and implementable, but an observation on how pernicious our cognitive biases are.

    Greenblatt found that a compilation of all the “professionally managed” – read “systematic, automatic (hydromatic)” – accounts earned 84.1 percent over two years against the [b]S&P 500 (up 62.7 percent)[/b]. A compilation of “self-managed” accounts [b](the humans) [/b]over the same period showed a cumulative return of 59.4 percent, losing to the market by 20 percent, and to the machines by almost 25 percent. So the humans took this unmessupable system and messed it up. As predicted by Montier and Greenblatt.  


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