We Study Billionaires - The Investor’s Podcast Network

Classic 04: Joel Greenblatt’s Book - You Can Be A Stock Market Genius

Jan 25, 2022

Explore how to strategically invest with limited downside while maximizing upside. Discover the art of profiting from spin-offs and the science behind risk arbitrage and merger securities. Learn the intricacies of call options, and delve into the value of understanding corporate restructuring and its effects on stock perceptions. Gain insights on investing in bankruptcy stocks and the importance of careful financial analysis. Engage with advanced strategies that combine options with value investing for enhanced portfolio management.

54:24

forum

Ask episode

web_stories

AI Snips

view_agenda

Chapters

menu_book

Books

auto_awesome

Transcript

info_circle

Episode notes

volunteer_activism

ADVICE

Diversification Strategy

Diversify your portfolio with around eight stocks in different industries to minimize risk.
More than eight stocks can lead to over-diversification and mirror S&P 500 returns.

volunteer_activism

ADVICE

Due Diligence

Do your homework and thoroughly research potential investments.
Base investment decisions on careful analysis, not impulse or speculation.

volunteer_activism

ADVICE

Selective Investing

Be patient and selective with investments, waiting for the right opportunities.
Focus on downside risk and margin of safety; upside will follow.

Get the Snipd Podcast app to discover more snips from this episode

Mastering Stock Market Strategies

02:40 • 11min

chevron_right

Navigating the Challenges of Investment Analysis

13:18 • 6min

chevron_right

Navigating the Spinoff Landscape

19:16 • 18min

chevron_right

Investing in Bankruptcy Stocks

37:41 • 6min

chevron_right

Understanding Corporate Restructuring and Its Impact on Investor Perception

43:55 • 2min

chevron_right

Mastering Options in Value Investing

45:30 • 9min

chevron_right

Understanding Investment: Knowledge, Passion, and Philanthropy

54:04 • 4min

chevron_right

You can be a stock market genius

Uncover the Secret Hiding Places of Stock Market Profits

Joel Greenblatt

This book provides a highly accessible guide to the stock market, focusing on special situations that portfolio managers and investment experts often miss. It includes case studies, important background information, and tools for individual investors to exploit opportunities in areas like spin-offs, restructurings, merger securities, rights offerings, recapitalizations, bankruptcies, and risk arbitrage. Greenblatt, who has been beating the Dow with returns of 50 percent a year for over a decade, shares his expertise to help readers become successful stock market investors.

The Little Book That Beats the Market

Joel Greenblatt

In this book, Joel Greenblatt provides a straightforward and accessible guide to value investing. He introduces a 'magic formula' that helps investors identify and purchase good businesses at below-average prices. The formula, explained using simple math and humor, has been extensively tested and proven to be effective in beating the market and professional managers. The book also explores why success often eludes individual and professional investors and why the formula remains viable even after widespread knowledge of it. Updated editions include data and analysis from the recent financial crisis and model performance through 2009.

One Up On Wall Street

Peter Lynch

In 'One Up On Wall Street,' Peter Lynch explains how average investors can outperform professionals by leveraging their everyday experiences and knowledge. Lynch advocates for investing in companies and products that are familiar and understandable, rather than following trendy or complex investments. He provides easy-to-follow advice on analyzing financial statements, identifying different types of companies (such as cyclical, turnaround, and fast-growing companies), and maintaining a long-term investment strategy. The book emphasizes the importance of simplicity, patience, and fundamental analysis in achieving successful investments.

IN THIS EPISODE, YOU'LL LEARN:

10:18 - How to take positions in the market with a $5 upside and a $1 downside.
13:14 - How to make money in spin-offs.
26:45 - How to make money in risk arbitrage and merger securities.
45:57 - How call options work.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Joel Greenblatt’s book, You Can Be a Stock Market Genius – Read reviews of this book.
Joel Greenblatt’s book, The Little Book that Beats the Market – Read reviews of this book.
Trey Lockerbie's interview with Joel Greenblatt.
Preston and Stig’s interview with well renowned investor, Mohnish Pabrai.
Preston and Stig’s interview with Ed Thorp who literally invented option valuation.
Preston, Trey & Stig’s tool for picking stock winners and managing our portfolios: TIP Finance Tool.
New to the show? Check out our We Study Billionaires Starter Packs.

SPONSORS

Support our free podcast by supporting our sponsors:

Bluehost
Fintool
PrizePicks
Vanta
Onramp
SimpleMining
Fundrise
TurboTax

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Learn more about your ad choices. Visit megaphone.fm/adchoices

Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Home Top podcasts Popular guests