Joel Greenblatt Investing Philosophy
Greenblatt tries to find cheap and good companies. He looks for value with a catalyst, so nice things happen sooner. Greenblatt likes special situations, and thinks that they are simply different places to find cheap stocks. In his own hedge fund, Greenblatt uses the basic principals in the Magic Formula: Look for high ROC and high earnings yield. He tries to figure out what "normalized earnings" will be 3-4 years into the future. Greenblatt makes sure the stock is very cheap based on normalized earnings. He is very concentrated in investing, 5 to 8 securities can make up 80% of his portfolio. One position could be as high as 30%.
Historical Allocation of Stock, Bonds, Cash
Performance of Gotham Absolute Return Fund
|Year||Return %||S&P500 %||Excess Gain %|
Commentaries and Stories
6 Stocks With Low Price-Sales Ratios
Freeport-McMoRan makes the list
56 Views Tiziano Frateschi 2019-01-18 16:50
Joel Greenblatt, Jellybeans and the Stock Market
Some invaluable advice from Joel Greenblatt on investing.
228 Views Rupert Hargreaves 2019-01-14 16:22
The Definition of Value Investing - Joel Greenblatt
One of the most interesting presentations about value investing in 2018
164 Views Hugo Roque 2019-01-08 20:54
2 Energy Stocks to Consider as Oil Prices Rise on Trade Talks, Supply Cuts
These companies are trading below Peter Lynch value
351 Views Sydnee Gatewood 2019-01-08 17:35
The 5 Worst-Performing Stocks in the S&P 500 for 2018
Investors were buying all of them
1151 Views Holly LaFon 2018-12-17 23:05
Is Yext a Buy After the Recent Fall?
The results of the third quarter were followed by a sharp fall of nearly 20% in Yext’s share price and while the revenue growth and partnerships are impressive, the losses continue to pile up
147 Views Ishan Majumdar 2018-12-11 17:14
What Is Joel Greenblatt Buying Today
Looking at the portfolio of one of the world's best investors
216 Views Rupert Hargreaves 2018-12-04 16:23
The World's Best Contrarian Investment?
UK stocks are currently cheaper than they have been for several decades
177 Views Rupert Hargreaves 2018-11-28 16:55
Joel Greenblatt: Expect Lower Returns and Focus on Cash
Some advice from the inventor of the Magic Formula
1842 Views Rupert Hargreaves 2018-11-28 16:44
Top Ranked Articles
Are You Ready to Come Back to Wall Street? There is an ETF Boom!
1710 Views Damian Illia 2013-11-07 16:03
Diversification is not an easy subject, but by analyzing data and applying some logic you can narrow down an optimal strategy
1546 Views Chris Gilbert 2016-04-25 15:27
Fossil: Catching a Break, or Catching a Knife?
2397 Views Robert Abbott 2015-04-16 20:30
Calculating the Return on Incremental Capital Investments
As a business owner, you want to know where you can reinvest your company’s excess cash flow and what rate of return you can get from those investments.
1551 Views John Huber 2016-06-06 19:40
PetSmart Is a Top Defensive Company with Growth
2540 Views Chris Mydlo 2014-05-01 22:22
Calculating United Tech's Fair Value Based on Future Growth Expectations
982 Views Damian Illia 2014-02-27 22:45
Joel Greenblatt's 2016 Outlook: Same Simple Secret to Long-Term Investment Success
Gotham Funds investor discusses 2 questions to ask after disappointing year
3150 Views Holly LaFon 2016-01-20 16:14
This Tech Company Endured the 90s Bubble and Managed to Stay on Top of the Market
1078 Views Damian Illia 2014-03-17 22:32
Buy the Keysight Technologies Spinoff After the Dip
1711 Views Ryan Vanzo 2015-06-17 20:00