Case Studies

Risk and Portfolio Management Similarities between Joel Greenblatt and Stanley Druckenmiller

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I have been busy over the past couple of weeks. My wife gave birth to twins about two weeks ago, and now that I am back in the office, I am catching up on some reading. While we were in the hospital for about a week, I did have some time to do some reading, and I have some comments on two annual reports of current holdings of mine—JP Morgan and Markel—which I may turn into brief posts. But briefly, […]

Investment Philosophy

Thoughts On Return On Capital And Greenblatt’s Magic Formula Part 2

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In part 1 of this post, I mentioned I caught a video interview with Joel Greenblatt at Morningstar. In the video, Greenblatt talks about indexing, and things that are not necessarily interesting to me and my investment strategy, but he also had some brief comments on Return on Capital. In the last post, I discussed the basic method that Joel Greenblatt uses to define Return on Capital. I also discuss some of the fundamentals and the importance of this key […]

General Thoughts

Thoughts on Return on Capital and Greenblatt’s Magic Formula Part 1

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I recently watched a video of Joel Greenblatt with Morningstar. Most of the video discusses the index approach to investing using a value weight (as opposed to equal weight or market weight, which most indexes use). I’m not that interested in indexing, although for individuals who want completely passive exposure to stocks, value weighting certainly makes much more sense to me than market weighting (because market weighting systematically buys more of a stock as it goes up, thus forcing you […]

General Thoughts

“Magic Formula” and Other Quantitative Results from 2013–Should the Computers Takeover?

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Let me say that the following few sentences only represent my humble opinion. There are many smart, talented, and successful practitioners that participate in the field that I am about to comment on… (Editor side note: unlike many who take pride in saying things such as “I tell it like it is”, or “I don’t care what others think”… I happen to dislike offending others and I do care what others think, but evidently I’m in the minority here. I […]

General Thoughts

Some Thoughts on Joel Greenblatt’s Magic Formula and its YTD Results

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“Value investing is simply figuring out what something is worth and paying a lot less for it” – Joel Greenblatt I often describe my investment philosophy as a synthesis of ideas from Ben Graham, Walter Schloss, Warren Buffett, and Joel Greenblatt. At the core of my strategy is Graham and Schloss’ quantitative methods for valuing stocks. It’s far more difficult to make mistakes when you simply make obvious, simple decisions based on valuation. In each investment, I want to ensure […]

Ben Graham

Some Thoughts on My Investment Approach

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I’ve been having numerous email conversations with readers about my investment philosophy and overall approach to investing. To understand my investment philosophy, you have to first understand the basic investment principles from the four investors who I’ve learned the most from: Ben Graham, Walter Schloss, Joel Greenblatt, and Warren Buffett. My investment approach is a confluence of ideas that primarily stem from those four investors. Graham is the foundation. Schloss and Greenblatt add important ideas and strategies to Graham’s foundation. Buffett […]

Joel Greenblatt

Joel Greenblatt Special Situation Investing Notes Part 1

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One of the blogs I read often (CSInvesting.org) recently did a blog post that contained links to some of his notes from a value investing class audited at Columbia. He doesn’t list who the investor is in his notes, as he says he wants his readers to be unbiased as they read through the notes. As I read through the first link that he calls Class Notes-Introduction to Value Investing for Special Situations, it’s clear that the class is being […]