It just seems logical that sticking to investing in only a small number of companies that you understand … - Joel Greenblatt

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You know, Emily was a selfish old woman in her way. She was very generous, but she always wanted a return. She never let people forget what she had done for them - and, that way she missed love.

Joel Greenblatt

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

Same Author Quotes

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

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

Figure, Investing, Pay, Secret

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

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

Big, Ideas, Quality, Remember

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