We Study Billionaires - The Investor’s Podcast Network

RWH003: How To Win The Investing Game w/ Joel Greenblatt

49 snips

Mar 29, 2022

Joel Greenblatt, a successful hedge fund manager and author, shares his unconventional wisdom on investing. He explains how bold bets on undervalued stocks can lead to remarkable returns. A major investment failure taught him the unpredictable nature of markets and the importance of resilience. Greenblatt delves into his admiration for Warren Buffett and his own 'magic formula' for selecting quality stocks. He emphasizes the significance of family, partnerships, and his commitment to improving education through his charter school network, Success Academy.

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ANECDOTE

Sinkhole Investment

Joel Greenblatt's first investment was Florida Cypress Gardens.
Weeks before the deal closed, the property fell into a sinkhole.

ADVICE

Diversification for Survival

Diversify your investments to survive unexpected events.
Bad things can happen, so prepare to live to play another day.

INSIGHT

Concentration vs. Business Ownership

Super-concentration can work if you understand your holdings.
Treat stocks like businesses, not pieces of paper with fluctuating prices.

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Richer, Wiser, Happier

How the World's Greatest Investors Win in Markets and Life

William Green

In Richer, Wiser, Happier, William Green draws on interviews conducted over twenty-five years with many of the world’s greatest investors. The book highlights that the most successful investors are mavericks and iconoclasts who question conventional wisdom and think rationally, rigorously, and objectively. They maximize their odds of long-term success in markets and life by drawing insights from diverse fields such as neuroscience, economic history, psychology, philosophy, and more. Green explains how these investors can teach us not only how to become rich but also how to improve our thinking, decision-making, risk assessment, and resilience, and how to turn uncertainty to our advantage.

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].

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.