Sell Discipline Rules
"Have clear, pre-defined sell criteria. Sell when: your thesis is broken, valuation is fully realized, or a significantly better opportunity appears."
Follow pre-defined sell criteria without emotion.
Read Full Analysis →Joel Greenblatt (born December 13, 1957) is an American investor, hedge fund manager, and author. He is the founder of Gotham Capital, which achieved annualized returns of approximately 40% from 1985 to 2006, and is a professor at Columbia Business School. Greenblatt is best known for developing the "Magic Formula" investing strategy, a systematic approach that ranks stocks based on...
"Have clear, pre-defined sell criteria. Sell when: your thesis is broken, valuation is fully realized, or a significantly better opportunity appears."
Follow pre-defined sell criteria without emotion.
Read Full Analysis →"Regularly review whether your original reasons for owning a stock still hold. If the facts change, change your mind. Holding a broken thesis is the costliest mistake."
Regularly challenge your original investment thesis.
Read Full Analysis →"After every sell, review the outcome. Did you sell too early, too late, or at the right time? Post-mortems on sell decisions improve future judgment."
Post-mortem every sell decision to improve.
Read Full Analysis →Joel Greenblatt has 3 key principles on selling & review. The most important one is "Sell Discipline Rules" — Have clear, pre-defined sell criteria.
Joel Greenblatt applies selling & review through several key principles including "Sell Discipline Rules" and "Review Your Investment Thesis". These principles guide practical investment decisions and have been tested across decades of market cycles.
Joel Greenblatt's approach to selling & review is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Joel Greenblatt provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.