Joel Greenblatt: The Intersection Of Quality And Value (Magic Formula For 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 ***************************************************** JOIN OUR NEWSLETTER AND FREE CHAT COMMUNITY: https://chitchatstocks.substack.com/ ********************************************************************* Chit Chat Stocks is presented by Interactive Brokers. Get professional pricing, global access, and premier technology with the best brokerage for investors today: https://www.interactivebrokers.com/ Interactive Brokers is a member of SIPC. ********************************************************************* FinChat.io is the complete stock research platform for fundamental investors. With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use. Use our LINK and get 15% off any premium plan: ⁠finchat.io/chitchat ********************************************************************* Bluechippers Club is a tight-knit community of stock focused investors. Members share ideas, participate in weekly calls, and compete in portfolio competitions. To join, go to ⁠Blue Chippers and apply! Link: ⁠https://bluechippersclub.com/ ********************************************************************* Disclosure: Chit Chat Stocks hosts and guests are not financial advisors, and nothing they say on this show is formal advice or a recommendation. Learn more about your ad choices. Visit megaphone.fm/adchoices