Top Joel Greenblatt Quotes - Quotesmemo.com

Joel Greenblatt Biography

Joel Greenblatt (born December 13, 1957) is an American academic, hedge fund manager, investor, and writer. He is a value investor, and adjunct professor at the Columbia University Graduate School of Business. He is the former chairman of the board of Alliant Techsystems and founder of the New York Securities Auction Corporation. He is also a director at Pzena Investment Management, a high-end value firm.

Read about Joel Greenblatt in Wikipedia

Random Authors

Joel Greenblatt Quotes

There’s a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions. You can’t be a good value investor without being an independent thinker – you’re seeing valuations that the market is not appreciating. But it’s critical that you understand why the market isn’t seeing the value you do. The back and forth that goes on in the investment process helps you get at that.

Good, Independent, Investor, Questions, Smart, Thinking

The way we make money as a group is that we don't pay a lot for anything, and most of the stocks we buy have low expectations.

Expectations, Group, Groups, Money, Pay

Here is part of the tradeoff with diversification. You must be diversified enough to survive bad times or bad luck so that skill and good process can have the chance to pay off over the long term.

Good, Long, Luck, Skill, Skills, Times

Value investing doesn't always work. The market doesn't always agree with you. Over time, value is roughly the way the market prices stocks, but over the short term, which sometimes can be as long as two or three years, there are periods when it doesn't work. And that is a very good thing. The fact that our value approach doesn't work over periods of time is precisely the reason why it continues to work over the long term.

Agree, Long, Thing, Two, Work, Years

Remember, it’s the quality of your ideas not the quantity that will result in the big money.

Big, Ideas, Quality, Remember

The more confidence I have in each one of my stock picks, the fewer companies I need to own in my portfolio to feel comfortable.

Comfortable, Company, Confidence, Needs, Portfolios, Stock

We are busy surviving, herding, fixating on what just happened, and being overconfident!

Busy, Happened, Overconfident, Surviving

Choosing individual stocks without any idea of what you're looking for is like running through a dynamite factory with a burning match. You may live, but you're still an idiot.

Dynamite, Funny, Ideas, Individual, Looking, Running

If I plug my estimates into the Magic Formula, and it comes out cheap, that's good.

Cheap, Estimates, Formula, Formulas, Magic, Plugs

My goal is to buy a company at a low multiple to normal earnings power several years out and that the company earns good returns on capital at that level of normal earnings. A holding period of more than one year also works quite well as the factors are persistent in years 2 and 3.

Goal, Levels, Low, Persistent, Several, Years

Something out of the ordinary course of business is taking place that creates an investment opportunity. The list of corporate events that can result in big profits for you runs the gamut—spinoffs, mergers, restructurings, rights offerings, bankruptcies, liquidations, asset sales, distributions.

Offerings, Opportunity, Rights, Running, Taking

Over the long term, despite significant drops from time to time, stocks (especially an intelligently selected stock portfolio) will be one of your best investment options. The trick is to GET to the long term. Think in terms of 5 years, 10 years and longer. Do your planning and asset allocation ahead of time. Choose a portion of your assets to invest in the stock market - and stick with it! Yes, the bad times will come, but over the truly long term, the good times will win out - and I hope the lessons from 2008 will help get you there to enjoy them.

Long, Portion, Stocks, Thinking, Winning, Years

I don't know too many people that are good at timing the market relative to macro-economic events.

Events, Good, Market, People, Timing

I wait until an investment idea is so good, it hits me over the head like an anvil.

Anvils, Good, Head, Ideas, Investment, Waiting

It just seems logical that sticking to investing in only a small number of companies that you understand well, rather than moving down the list to your thirtieth or fiftieth favorite pick, would create a much greater potential to earn above-average investment returns.

Average, Investing, Moving, Numbers, Thirtieth, Understand

The secret to investing is to figure out the value of something - and then pay a lot less.

Figure, Investing, Pay, Secret

If you spend your energies looking for and analysing situations not closely followed by other informed investors, your chance of finding bargains greatly increases.

Chance, Energy, Finding, Greatly, Increase, Looking