In this engaging conversation, legendary value investor Joel Greenblatt shares insights from his illustrious career and his latest book, 'Common Sense: The Investor’s Guide to Equality, Opportunity, and Growth.' He discusses his evolution from a concentrated to a diversified portfolio strategy and reflects on the emotional challenges of managing investments. Greenblatt also delves into the importance of the Value Investors Club, innovative educational reforms, and his InvestFive initiative, which encourages disciplined saving habits for everyone.
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question_answer ANECDOTE
Initial Spark
Joel Greenblatt's interest in investing sparked after reading a Forbes article about Ben Graham's stock picking formula.
This challenged his prior education on efficient markets, leading him to explore value investing.
question_answer ANECDOTE
Early Success with Value Investing
After business school, Greenblatt tested Graham's formula with friends, raising $250,000 from his father's contacts.
He bought "cigar butts" and "net nets", achieving early success despite briefly attending law school.
question_answer ANECDOTE
Shift to Special Situations
Greenblatt transitioned from risk arbitrage to special situations, finding it more aligned with his investment philosophy.
This led to an opportunity with Mike Milken, where he negotiated his own deal and started his fund.
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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[2][3][4].
The Splendid and the Vile
A Saga of Churchill, Family, and Defiance During the Blitz
Erik Larson
The book chronicles the period from May 1940 to May 1941, highlighting Churchill's leadership during the Battle of Britain and the Blitz. It draws on diaries, archival documents, and once-secret intelligence reports to provide a vivid portrayal of Churchill's family, including his wife Clementine, their children, and his close advisers. The narrative delves into the personal and political challenges faced by Churchill as he navigated the critical early months of World War II, emphasizing his eloquence, courage, and perseverance in the face of unrelenting horror[1][2][4].
The Big Secret for the Small Investor
Joel Greenblatt
In this book, Joel Greenblatt explains how small investors can gain an edge over larger investment firms by leveraging value investing principles and quantitative discipline. He provides insights into how markets work and offers strategies for identifying excellent investment opportunities. The book is based on path-breaking research and offers practical advice for both individual and professional investors.
Common Sense - the Investor`s Guide to Equality, Opportunity, and Growth
Joel Greenblatt
In *Common Sense*, Joel Greenblatt presents an investor's perspective on creating a more equitable economy. He proposes disruptive solutions to issues like education inequality, immigration reform, and banking regulation, aiming to spark meaningful conversations about economic growth and opportunity. Greenblatt draws on personal experiences and external insights to advocate for immediate changes that can benefit everyone.
Joel Greenblatt is a legendary value investor, founder of Gotham Capital, longtime teacher at Columbia Business School, and author of four investment books, the latest of which, Common Sense: The Investors’ Guide to Equality, Opportunity, and Growth recently hit the bookstands.
Our conversation takes a tour through Joel’s career. We cover his background, early success running a concentrated portfolio, closing of the fund to manage his own money, and re-opening with a more diversified approach. We discuss Joel’s timeless investment beliefs and along the way also discuss the Value Investors Club, seeding managers, and applying investment lessons to education.
Capital Allocators – Inside the Institutional Investment Industry 
