The more you try to do with your portfolio, the worse your returns will often be, according to hedge fund guru Joel Greenblatt. In a column for Morningstar.com, Greenblatt explains why investors who tried to implement his “magic formula” investing plan by themselves have fared worse than those who have asked for the plan to [...]
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Tag Archives: Joel Greenblatt
How Many Stocks Is Enough?
December 30, 2011
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How many stocks should an investor own in order to diversify away stock-specific risk? Some interesting data shows that it may be fewer than you think. The data comes from hedge fund guru Joel Greenblatt’s book, You Can Be A Stock Market Genius, and was highlighted by top value investor Whitney Tilson a few years back [...]
Read moreGreenblatt Seeing Plenty of Value
October 18, 2011
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Hedge fund guru Joel Greenblatt thinks the next year is setting up to be a good one for stocks. “Not only is the market cheap, but the value opportunity is really nice right now,” Greenblatt said at the Value Investing Congress in New York, according to The Wall Street Journal. “Greenblatt … opened the conference [...]
Read moreGreenblatt: Stocks Looking Cheap — Very Cheap
September 27, 2011
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Hedge fund guru Joel Greenblatt says that, based on trailing free cash flow yields, stocks are trading at levels that put them in about the 95th percentile of cheapness when examining the past 20 years of market history. Greenblatt tells CNBC that if the past is any indication, valuation levels this low could be proceeded [...]
Read moreTilson & Heins on Staying Disciplined
August 26, 2011
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Warren Buffett has said that investing is simple, but it’s not easy, and in their latest Kiplinger’s column, value investors Whitney Tilson and John Heins explore that subject. “In The Little Book That Beats the Market, published in 2005, star money manager Joel Greenblatt describes a ‘magic formula’ for success that ranks stocks based on [...]
Read moreThe Greenblatt Approach: A Simple, Elegant Way to Crush the Market
July 22, 2011
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Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Joel Greenblatt-inspired strategy, which has averaged 11.0% annualized returns since its inception more than five-and-a-half years ago, over a period in which the S&P 500 has returned 1.1% per year. [...]
Read moreGreenblatt on the Dangers of Short-Term Thinking
July 8, 2011
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In the latest episode of Forbes‘ Intelligent Investing, Joel Greenblatt gives a wide-ranging interview on the market and investment strategy. In this clip, Greenblatt talks about how the institutionalization of the investment world has made for a major increase in short-term thinking, which opens up opportunities for patient, long-term investors — if they stay disciplined. [...]
Read moreGreenblatt: Stay Disciplined, Think Long Term
July 1, 2011
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Find a strategy you understand in and believe in, and stick with it — it sounds simple, but many investors fail to do that. And, according to hedge fund guru Joel Greenblatt, it’s key to beating the market over the long haul. “You have to understand what’s being done,” Greenblatt tells Forbes. “That’s the hope, [...]
Read moreGreenblatt on Why Fund Managers Fail
June 13, 2011
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In an article for RegisteredRep.com, hedge fund guru Joel Greenblatt takes a look at why so many mutual funds fail to beat the market averages over the long haul, and offers tips for how the “little guy” can beat the market. One big thing that hurts mutual fund performance, Greenblatt says, is fund fees, which [...]
Read moreFive Magic Formula Stocks for the Year Ahead
May 26, 2011
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In his latest article for Forbes.com, Validea CEO John Reese examines his Joel Greenblatt-inspired approach, which has beaten the market by about 10 percentage points per year over the past five-and-a-half years. “Greenblatt’s two-step approach is simple, but that doesn’t mean it’s easy to use,” Reese writes. “That’s because, like Warren Buffett, Greenblatt realized that [...]
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