Joel Greenblatt on How to Achieve a 40% Return a Year

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.

Warren Buffett Reading List:
(The above are affiliate links that help support the channel at absolutely zero cost to you.)

OTHER VIDEOS YOU MAY LIKE:

[jeffshackelford]

I missed the part about how to achieve 40% a year return.

[TwiztedHumor]

Exactly. Real investing has nothing to do with speculating on market price movements or trading. Eventually a business will be revalued to something close to what its actually worth in capital and future cash flow.

[dakotah]

Love the video! It sums up the strategies he used to achieve that 40% annual return well!

[RiggyRonnie]

Go all in on a stock that will rise 40% yoy, problem solved

[ascensionblade]

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?!

[basshiko]

He seems to confuse valuation with pricing. I recommend reviewing Damodaran's definition for a better understanding of what valuation really is.

[indexplus]

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

[jemiez]

Damn.give some respect to whoever asked him to teach 9th grade kids about the market.Thats some early mentoring there.This should be done to all schools in this world and investment market subject should je created.

Also, in my opinion any investors should really started to diversified their portfolios to also includes developing and emerging markets stocks. I know Warren Buffet once said never bet against America but rest of the globe already knows that US influence, hegemony and superpower status is dwindling.Some may not wants to admit it but the US is indeed an Empire, a modern empire and we all knows what fate befall all the previous empire no matter how powerful or big it is. Sooner ot later, the party or to be exact, US and its stock market will stop existing letting anyone that got their entire portfolios in the US as the bagholders.

[jackhalas]

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

[ahmedxh]

Investor center, your content is good. Why do you have to tarnish it with shameless click baits?

[john]

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

[noelwong]

Thanks for the video... please continue posting good videos to share to the world

[djpuplex]

Fun drinking game take a dip every time he says ahh, ahh. RIP from alcohol poisoning.

[auricgoldfinger]

Super bright guy, but can you imagine listening to him for a semester- how many Ughs? A hundred thousand?

[benziongisser]

This is great, but he says "uh" so much.

[jakejake]

Didn't he give Michael Burry hell when he was betting against real estate in 2007/2008 ?

[GoodwalkSpoiled]

He said, Uuuuhhhh several thousand times.

[luckyjaswal]

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.

[rohan]

Very thine a person says ahh hmm. Then what they just said or are going to say is questionable

[benGeorge]

uhhhh uhhhh uh smart man just needs to chill