Joel Greenblatt: The Intersection Of Quality And Value (Magic Formula For Stocks)

Chit Chat Stocks

On this episode of Chit Chat Stocks, we research Joel Greenblatt and what we can learn from the investor who put up 50% annualized returns before fees for Gotham Capital. We discuss:

(02:55) Who is Joel Greenblatt?

(08:34) Gotham Capital's Performance

(11:36) Special Situations Investing

(12:34) Understanding Spin-Offs

(19:30) Mergers and Arbitrage

(23:35) Bankruptcies and Restructurings

(32:35) Recapitalizations, Options, and Leaps

(36:19) Understanding the Little Book: Quality Stocks at Cheap Prices

(41:11) Screening for Value: EV to EBIT and ROIC

(49:13) The Magic Formula: Combining Quality and Value

(57:59) Lessons from Joel Greenblatt: Complexity and Homework

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Disclosure: Chit Chat Stocks hosts and guests are not financial advisors, and nothing they say on this show is formal advice or a recommendation.