#1
Quality at a Fair Price
"The ideal investment is a high-quality business purchased at a fair price. Quality compounds wealth; fair prices protect capital."
Seek quality businesses at fair prices.
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Joel Greenblatt📌 Stock Picking
Joel Greenblatt's Stock Picking Rules
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...
3 principles·Stock Picking
3 Key Stock Picking Principles
#2
Understand Before Investing
"Never invest in a business you cannot explain in simple terms. If you can't describe why a company is valuable, you don't understand it well enough to own it."
Only invest in what you can explain simply.
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Catalyst-Aware Stock Picking
"Look for investments where a specific catalyst will unlock value. Without a catalyst, even cheap stocks can remain undervalued indefinitely."
Identify specific catalysts that will unlock value.
Read Full Analysis →Frequently Asked Questions
What are Joel Greenblatt's key stock picking principles?
Joel Greenblatt has 3 key principles on stock picking. The most important one is "Quality at a Fair Price" — The ideal investment is a high-quality business purchased at a fair price.
How does Joel Greenblatt apply stock picking in practice?
Joel Greenblatt applies stock picking through several key principles including "Quality at a Fair Price" and "Understand Before Investing". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Joel Greenblatt's approach to stock picking unique?
Joel Greenblatt's approach to stock picking 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.
