Joel Greenblatt is a very successful value investor and the founder of Gotham Capital. Joel an adjunct professor at the Columbia Business School (Warren Buffett’s alma mater) and author of three investment books namely,You Can Be a Stock Market Genius, The Little Book That Beats the Market and The Big Secret for the Small Investor.
However, the above accolades pale in front of his real accomplishment. His investment firm has averaged a whopping 40% annual return from 1985 to 2016. Just to give you an idea, Rs 100 compounded at the rate of 40% for 20 years turns into Rs 83,600. In the investment world, where 100-baggers are extremely rare events, Greenblatt has turned his investor’s corpus to 800-bagger.
Returns like that don’t come with plain luck. At least not for such a long time. I am sure you are excited to know about the tricks that Joel Greenblatt has up his sleeve that has enabled him to create such an enviable long-term record. You can learn all about his secrets and investing methods in his books but what’s more important to first learn are the basics that underlie his investment process.
<!–more–>
Want to Read More? This content is exclusive for members of Value Investing Almanack. Login to read if you are a member. Else, click here to subscribe.
- Spotlight: Big ideas from Value Investing and why applying them in your investment decision making will be a great deal
- InvestorInsights: Interviews with experienced value investors, learners, and deep thinkers
- StockTalk: Thorough analysis of business models of companies (without any recommendations)
- Behaviouronomics: Deep analysis of human behaviour and how it impacts investment decision making
- BookWorm: Reviews of the best books on Value Investing and related subjects
- Free Course – Financial Statement Analysis for Smart People (otherwise priced at Rs 5,900)
- Archives: Instant access to our huge archive from the past three years