📖Joel Greenblatt
Sell Discipline Rules
Follow pre-defined sell criteria without emotion.
Have clear, pre-defined sell criteria. Sell when: your thesis is broken, valuation is fully realized, or a significantly better opportunity appears.
🏠 Everyday Analogy
📖 Core Interpretation
Joel Greenblatt advocates a repeatable process: define criteria, execute consistently, and review decisions against evidence. Process quality drives outcome consistency.
💎 Key Insight：Disciplined selling prevents emotional decision-making.
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❓ Why It Matters
Without process, there is no reliable feedback loop. Structured execution and review improve decision quality over time.
🎯 How to Practice
Run a decision loop of research, thesis, execution, and post-mortem; document assumptions and update playbooks with evidence, not hindsight bias.
⚠️ Common Pitfalls
Having opinions without execution criteria
Reviewing outcomes but not decisions
Abandoning rules during volatility spikes
📚 Case Studies
1
Avoiding Complex Tech Mania (2000)
During the dot-com bubble, Greenblatt emphasized avoiding hard-to-value tech companies with no profits and unclear models.
✨ Outcome：Investors who stayed with simple, profitable businesses avoided the crash and outperformed over the next decade.
2
Apple Post-Dot-Com Bust (2000)
After the tech bubble burst, Apple traded at a low earnings yield despite strong product pipeline and improving profitability.
✨ Outcome：Investors focusing on high earnings yield and durable business saw significant multiple expansion and outsized returns over the next decade.
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