Joel Greenblatt, founder of Gotham Asset Management, talks about the investing principles that was able to help him achieve a 40% annual return during his career. Greenblatt is an American academic, hedge fund manager, investor, and writer. He is a value investor, alumnus of the Wharton School of the University of Pennsylvania, and adjunct professor at the Columbia University Graduate School of Business. He runs Gotham Funds with his partner, Robert Goldstein.
Greenblatt introduced the magic formula for investing which uses value investing based principles to identity undervalued stocks to buy and overvalued stocks to short. I’m addition to investing, Greenblatt was an early investor in Michael Burry’s investment fund.
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Love the video! It sums up the strategies he used to achieve that 40% annual return well!
Glad you enjoyed it!
Like he said in the video, those returns are totally theoretical based on retrospective analysis of historical data. His actual fund has failed to beat the S&P 500 since inception.
@Chris F That was when he got too big, his Gotham fund averaged 50% every year for 10-15 years.
Fun drinking game take a dip every time he says ahh, ahh. RIP from alcohol poisoning.
You would get drunk to fast
Joel Greenblatt is underrated
So, just tell us the metrics and ratios with number health checks and tell us which ratios differ on different sectors. Come on.
Oil went down today
Yeah it depends on the industry or sector, you have to compare it.
@MAD MAGGOT Yeah
Thanks for the video… please continue posting good videos to share to the world
Thank you Noel!
Warren Buffett: 90 Years of Investment Wisdom Summed Up in 16 Minutes ===> https://youtu.be/eyVSCDVdI9c
Go all in on a stock that will rise 40% yoy, problem solved
i am already up 41% in 5 months lol
7 months not to lose it
@Mithun Penheiro what ? btw lmao i am up 14.8% this week
Sebastian luck ? 🤡🔫
Nice bro, I’m relatively newbie but I think I got a really good teacher.
I hold MTY and MED since +- September and I’m up 43%.
*Apologize in advance if there is any grammar mistake. Learning english 😅
Sebastian no 9 months ago the stock market fell around july it was already recovered i just found some good day/swing trading stocks eveb this week i am up 8.7% while i barely did anything
His fund owns thousands stocks. What is he talking about? That’s an index fund basically. And stocks are bought and sold every few months. The turnover is huge. Nothing to do with B. Graham or Buffett
You can probably get 40% return for 3 consistent years but will lose all of that probably sooner than you can realise. I’m better off getting 20% average return for consecutive years.🙏 Just my take.
We have to remember that we are small investors, so we can achieve 30% avg returns yoy. But we need to put some time and effort on it
High Return != High Risk.
You get higher returns by being more selective and only investing in things where you have a larger margin of safety.
I missed the part about how to achieve 40% a year return.
Step 1: Only invest in sure things.
Step 2: Be patient, never sell.
N. B. Of the two, step 2 is the hardest.
that was the clickbait
Read his book my man. He explains it better there. If you read his book this makes more sense.
How did he know that I check my stocks’ prices 30 times each minute, though? I’m supposed to believe he doesn’t have magic powers?!
Exactly 40 %? Wow.
Close enough haha
I need 40% a month
If only 😂
40% ? Lol buy Bitcoin and wait a year guarantee that will be more than 40%. Same with bio nano. Same with jagx. Same with mgti I don’t listen to any analysts anymore and spend 2-3 days DD on a company. If I was only doing 40% a year I’d give up honestly. I’m not bearish in the slightest but every stock I own , apart from chek has done more than 40% in a week
@Dan Lyndon it depends not on a year, bull or bear market, but on how much cash you have. Ofc, that you can’t do 40% with portfolio of 10M dollars or more, because you would be the one who would move market, lol. But if your portfolio, let’s say 10 thousand, you can double or triple that sum every year easily, until it will become large enough that you can’t anymore.
It’s a year later, bitcoin is down 80%
Tulips, come get your tulips here!
@Dan Lyndon This guy doesnt buy growth stocks
The problem is that an overvalued stock keeps getting more overvalued and the stock getting undervalued keeps getting further undervalued. And the market can be wrong longer than you can be solvent
Nobody says you need to use leverage.
How are you becoming insolvent owning a stock long? I assume that when Keynes said that he was A) probably talking about professionally investing money for others and probably also using leverage and/or shorting B) saying it somewhat in jest
Solvency only matters if you short. Otherwise, the least you can go to is 0
@Jordan EXACTLY. You can remain solvent for as long as you are patient so long as you’re unlevered. There’s no such thing as leveraged buy and hold investing, much less leveraged value investing.
Very good methodology.
It has worked well for him over his career
8:47 thank you 🙏
The difficult thing is not understanding this approach, it’s executing it over a long period of time even when you’re losing lots of money while your friend who’s never read anything made a bundle of money in crypto lol