We Study Billionaires - The Investor’s Podcast Network

TIP136: Joel Greenblatt - You Can Be A Stock Market Genius (Business Podcast)

4 snips

Apr 30, 2017

Joel Greenblatt, a renowned professor at Columbia Business School and a master value investor, shares his investment genius. He explains how to spot stocks with a $5 upside versus a $1 downside and dives into making profits from spin-offs and merger arbitrage. Greenblatt demystifies call options and discusses corporate restructurings, revealing how they can expose hidden value. With practical examples, he equips listeners with strategies to enhance their investing prowess, all while making complex ideas accessible and enjoyable.

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ADVICE

Diversification Strategy

Diversify your portfolio with around eight stocks in different industries to minimize risk.
Avoid over-diversifying, as it can dilute returns and make it harder to track individual companies.

ADVICE

Importance of Research

Do your homework and thoroughly research companies before investing.
Don't rely on others' analysis; understand the businesses yourself.

ADVICE

Selective Investing

Be patient and selective with your investments, waiting for the right opportunities.
Focus on minimizing downside risk rather than maximizing upside potential.

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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 intelligent investor

Jason Zweig

Benjamin Graham

Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949. The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety. The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market. Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.

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].

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.