Joel Greenblattâs Investing Philosophy
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- Äas pĆidĂĄn 19. 06. 2024
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Trey Lockerbie is joined by legendary investor, Joel Greenblatt. Joel is the managing director and Co-CIO of Gotham Capital, which has produced spectacular returns for over 3 decades.
He is also the author of investing classics like The Little Book that Beats the Market, and You Can Be a Stock Market Genius. On top of that, he is a professor at Columbia University, where he teaches value investing to MBA students.
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đ BOOKS MENTIONED:
- Common Sense: The Investor's Guide to Equality, Opportunity, and Growth - amzn.to/3lpXfeR
- The Little Book That Still Beats the Market - amzn.to/3J8N9W9
- You Can Be a Stock Market Genius - amzn.to/3JbQxjk
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Hey guys, what are your key takeaways from this episode?
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"The little book that beats the markets" is one of my favourite investment books of all time. This episode was awesome!
Yes itâs one of the best books written about investing. Thanks for this great podcast. đ
How does his strategy hold up today? I just checked his total return fund at Gotham and it is getting destroyed by the S&P 500 index over 3 years (64% vs 11%) and 5 years (102% vs 35%). Also the index killed this fund over lifetime by 90 percentage points as of 2/21/22.
I'm a fan of Joel's and bought and read most of his books. Super smart guy. I enjoy his writing and seminars. The methodologies all make logical sense but his early success he admits was special situations. I'm not sure how well his strategy has worked in the last decade or will work going forward. I mean the returns for the Gotham total return fund was truly destroyed by the S&P.
I love Joel and his honesty.He is a real asset not for only the value investing but the whole investing community.There are incredibly very few people with this kind of skills and knowledge.
Amazing and simplified for all types of investors.
Thank you so much!
This channel is pretty much undervalued!
This was pure gold, thank you so much for putting out this type of content
Great interview. Itâs ALWAYS great to hear an interview with Joel Greenblatt! Just listened to it for the second time.
Here's another interview of Joel Greenblatt with William Green: czcams.com/video/U3PLytnB1qM/video.htmlsi=QPqPGT8OpRX1jRQp Hope you enjoy this one too đ
14:43
Joel's book -You could be a Stock Market Genius was a useful read, i know he criticizes it here and perhaps it's not the first book to read if your trying to learn investing basic but it does do a good job of going through special situations that alot of other value investing books do not cover.
41:30 is probably one of the key take-aways: Buy a company gushing cash, that will beat a 6% risk free rate (adjusted with a risk premium that he talked about earlier), growth over time, and a good franchise. Classic Buffett really!
And thanks TIP - you guys are top level!
Thanks so much for the support!
great interview i agree with him on a lot... y? because... "Common sense". i thought i was "odd" for not wanting to invest in ALI BABA when all the heavy hitters from Munger to Monish getting into it but I just couldn't make sense of putting my money into a Chinese Stock where corruption is the standard and anything goes. The risk to me was too high for the reward when you have better options. To me even owning Amazon at its high p/e ratio makes more sense then BABA. So as much as I love Monish way of investing... he seems to not care too much on investing into higher risk nations (china and other emerging markets). Thats just not my cup of tea past performance doesn't guarantee future returns and it seems that China's growth rate is headed towards turbulence ahead... it would be scary to own a stock there and the govt just cannibalizes and nibbles on them as they did with BABA.
Great points. What do you like today?
@@jeffreyvanco1164 smaller / midsize growing businesses going for good values USA. i bought some shares in ally bank for example. also own some ET for midstream energy. Overall the market seems pretty overpriced i hold a portion of my portfolio in cash as gun powder for when i can take advantage of a big dip / correction.
Well just as a counterpoint from someone who has more than half their portfolio in BABA I see it as good risk/return offering as BABA has the possibility to somewhere between 4x and 10x in 15 years, with a solid moat about e-commerce and cloud computing along with all their other endeavors. The risks are obviously corruption, delisting, China, and competition, I think corruption is a low likelihood situation with BABA just because the management currently in place were more or less handpicked by Jack Ma who I'm sure deeply vetted them along with the fact Charlie Munger who knows Li Lu invested in the company signaling that likely the management was also in some way or another vetted. The second risk of US delisting is the most frightening to me personally, but I think the likely outcome more than the US delisting is some sort of compromised co operation, obviously that's just a gut feel but I think it's more likely than China essentially causing Chinese companies to not be able to take in foreign capital to grow as that would be a form of shooting themselves in the foot. Even if it happens though I think it's likely the management would return the capital at current prices to investors which would be a 40% loss of capital but with a low possibility of occurring and high possible upside I think it might be worth it. The third risk of China I think has to be considered in the context of the goals of the CCP which ultimately want Chinese companies to beat American ones, so therefore I see it as unlikely that the CCP will destroy the ecosystem the Tencents and Alibabas have built so that they can challenge the Facebooks and Amazons of the US, I see it more as hedge trimming or like Bonsai miniatous more than chopping down of the tree. Finally I think competition is low to modest for BABA in that you Mercado Libre, Amazon, JD, Sea, and PDD but all these companies other than Amazon lack the scale or infrastructure of BABA that isn't to say that they won't take pieces of market share, but since the pie in China is growing and all tech is getting hit, therefore I think it's likely that they will be part of many duopolies where even if they are the smaller player in the market they will still have expanded their revenues from current positions by a significant chunk. As well Pabrai is more comfortable with risk but even Spier bought BABA and he's someone that would rather take less optimized returns if it means his downside is more protected. As he says he wants to drive a tank not a race car. All this being said, obviously BABA may just not be right for you, but perhaps this is a useful perspective to understand what exactly the risk/reward of the situation is. But yea good luck and good fortune.
u might want to change your mind now and so am I. after the whole tech crackdown saga, i bought Tencent back in October (my timing is luck). and u know what Chinese stock bounce back the most after Xi taking a 180 degree turn? fucking education stock............
I think it all comes down to position sizing
Didn't get his points in first 15 min. So I gave up. Just a show-off talk I feel
Australia is Leading the world in Super!
Great Talk Joel & Trey.....Very Imformative!
Joelâs one of the best investing teachers in current times and his teachings will last the test of time well after him in my opinion. Love listening to you and have read all your books. Great chat!!
great video. You have a new subscriber :)
Thank you for listening. Welcome aboard!
can you delete the spam comments? they mislead and rip people off
Xclnt
The podcasters voice sounds like it is coming out from a well. Please adjust your echo effect. I listened to other podcasts too. Same problem
I meant the host
Step 1: choose something you understand
Step 2: Choose something that doesn't change at its core every other day
Step 3: choose something that's limited
Step 4: choose something that isn't in centralised control of anyone
Step 5: invest in Bitcoin
So you understand Bitcoin?
What is its asset class?
@@caniblmolstr4503 it is its own asset class, because there is nothing to compare it to.
@@TomRauhe Are you sure?
@@caniblmolstr4503 yes.
@@TomRauhe Then how do steps 1 to 3 apply to bitcoin?
Good podcast, but the Introductory "You're listening to T.I.P." may well be one Earth's top ten unpleasant sounds. It is the vocal equivalent to a thousand fingernails screeching across a chalkboard.