Joel Greenblatt is one of the best investors in the world.
Between 1985 and 2005, he compounded at 33% (!) per year.
This week, we'll publish a summary of all his class notes (> 300 pages) on our website.
qualitycompounding.substack.com
Between 1985 and 2005, he compounded at 33% (!) per year.
This week, we'll publish a summary of all his class notes (> 300 pages) on our website.
qualitycompounding.substack.com
Here are 10 investing rules of Joel Greenblatt for those who can't wait:
1. Look for companies with high return on invested capital (ROIC) and a high earnings yield.
2. Avoid overpaying for a stock by ensuring it has a reasonable price-to-earnings (P/E) ratio.
1. Look for companies with high return on invested capital (ROIC) and a high earnings yield.
2. Avoid overpaying for a stock by ensuring it has a reasonable price-to-earnings (P/E) ratio.
3. Invest in simple, easy-to-understand businesses with a durable competitive advantage.
4. Focus on companies with a strong balance sheet and minimal debt.
4. Focus on companies with a strong balance sheet and minimal debt.
5. Avoid companies with a history of poor financial performance or management.
6. Consider market inefficiencies, such as spin-offs or mergers, as potential investment opportunities.
6. Consider market inefficiencies, such as spin-offs or mergers, as potential investment opportunities.
7. Use a value-oriented approach and invest in companies that are trading at a discount to their intrinsic value.
8. Have patience and discipline in holding onto high-quality investments.
8. Have patience and discipline in holding onto high-quality investments.
9. Diversify your portfolio across different industries and asset classes.
10. Keep investing costs low by using low-cost index funds or minimally-managed portfolios.
10. Keep investing costs low by using low-cost index funds or minimally-managed portfolios.
That's it!
Do you want to receive all Greenblatt's class notes mapped in 1 PDF?
Take a look at the link in our first tweet, go to the 'Reading' section and download them for free.
Do you want to receive all Greenblatt's class notes mapped in 1 PDF?
Take a look at the link in our first tweet, go to the 'Reading' section and download them for free.
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