Hedge fund manager Joel Greenblatt, author of The Little Book that Beats the Market, uses what he calls a “magic formula” to earn returns that outperform the market. In a recent article for TheStreet.com, John Reese, CEO of Validea, explains Greenblatt’s strategy of focusing on return-on-capital and earnings yield to find “good companies at bargain […]
“I think the big move now is from active [investing] to passive, and that’s good for most people,” says Joel Greenblatt, Managing Principal of Gotham Asset Management and the guru Validea’s “Earnings Yield Investor” is based on. In a recent interview with CNBC, Greenblatt shared his opinion that “most people shouldn’t be picking individual stocks […]
Why did top strategist Joel Greenblatt change his investment strategy from a highly concentrated one to one that invests in hundreds of stocks? That is one of the many interesting topics Greenblatt covers in a recent interview with WealthTrack.
Hedge fund guru Joel Greenblatt says that the large-cap universe is looking a lot more attractive than the small-cap space from a valuation perspective right now.
Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Joel Greenblatt-inspired strategy, which has averaged annual returns of 10.7% since its late 2005 inception vs. 5.3% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring stock […]
Hedge fund guru Joel Greenblatt says he’s seeing a wide disparity in the way the current market values large stocks and small stocks.
While people often use the words simple and easy to describe the same thing, there’s a big difference — a difference Validea CEO John Reese says has big implications in investing.
Hedge fund guru Joel Greenblatt is known for the “Magic Formula” approach that he laid out in his Little Book That Beats The Market. But more than two decades before that, Greenblatt detailed another strategy that may have even more magic in it, according to ValueWalk.
In his latest column for Forbes.com, Validea CEO John Reese invokes mutual fund legend Peter Lynch in discussing the importance of staying disciplined when the market gets rough.
While he hasn’t changed his general value investing approach, hedge fund guru Joel Greenblatt has changed the way he implements that strategy. The reason? Many investors just can’t handle the ups and downs of a concentrated portfolio.
It may not be magic, but hedge fund guru Joel Greenblatt’s “Magic Formula” sure is a market-beater, Validea CEO John Reese writes in his latest Forbes.com column.
Standout hedge fund manager Joel Greenblatt says his “Magic Formula” is finding more value in large-cap stocks than small caps right now. Greenblatt told CNBC that, based on a review of decades of history, he’s finding that large-caps are in the 38th percentile towards expensive right now, meaning they’ve been cheaper than they are now […]
Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Joel Greenblatt-inspired strategy, which has averaged annual returns of 10.0% since its December 2005 inception vs. 4.4% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring […]
In his latest Seeking Alpha column, Validea CEO John Reese takes a look at a luxury goods stock that’s getting strong scores from his guru-inspired models: Coach Inc. Reese notes that Coach shares have stumbled over the past year and a half, with the latest negative catalyst being a downward revision to its forward guidance. […]
In his latest RealMoney column, Validea CEO John Reese takes a look at Joel Greenblatt’s remarkably simple — and remarkably successful — investment strategy. “For many years, I have been studying how great investors invest, and almost always, they use five or 10 or more variables, so they can look at a stock and its […]
Hedge fund guru Joel Greenblatt has produced remarkable returns over the long haul using what he calls his Magic Formula. But in his latest column for Forbes.com, Validea CEO John Reese says there is much more to Greenblatt’s approach than magic. “While the remarkably simple strategy includes just two variables, Greenblatt — much like the […]
Every other issue of The Validea Hot List newsletter examines in detail one of John Reese’s computerized Guru Strategies. This latest issue looks at the Joel Greenblatt-inspired strategy, which has averaged annual returns of 6.6% since its December 2005 inception vs. 2.4% for the S&P 500. Below is an excerpt from the newsletter, along with several top-scoring […]
In a recent column for Canada’s Globe & Mail, Norman Rothery says that using simple numerical stock-picking models can lead to strong returns — but that sticking to those strategies is both critical and very difficult. “A huge pile of research points to an array of simple numerical stock strategies that boosts returns over the […]
In a wide-ranging interview with the Columbia Business School’s Graham & Doddsville newsletter, hedge fund guru Joel Greenblatt says the stock market is in the “87th percentile towards cheap” right now, and discusses a myriad of aspects of his investment approach. Greenblatt says that, using the market-cap-weighted free cash flow yield of the Russell 1000 […]
Hedge fund guru Joel Greenblatt is finding value in the technology and retail sectors. Greenblatt tells CNBC that he’s high on tech firms like Apple and Microsoft, and retailers like Best Buy. He says some of the firms are facing headwinds, but that the headwinds are actually good, because they’ve lowered expectations and baked negative […]
The more you try to do with your portfolio, the worse your returns will often be, according to hedge fund guru Joel Greenblatt. In a column for Morningstar.com, Greenblatt explains why investors who tried to implement his “magic formula” investing plan by themselves have fared worse than those who have asked for the plan to […]
How many stocks should an investor own in order to diversify away stock-specific risk? Some interesting data shows that it may be fewer than you think. The data comes from hedge fund guru Joel Greenblatt’s book, You Can Be A Stock Market Genius, and was highlighted by top value investor Whitney Tilson a few years back […]
Hedge fund guru Joel Greenblatt thinks the next year is setting up to be a good one for stocks. “Not only is the market cheap, but the value opportunity is really nice right now,” Greenblatt said at the Value Investing Congress in New York, according to The Wall Street Journal. “Greenblatt … opened the conference […]
Hedge fund guru Joel Greenblatt says that, based on trailing free cash flow yields, stocks are trading at levels that put them in about the 95th percentile of cheapness when examining the past 20 years of market history. Greenblatt tells CNBC that if the past is any indication, valuation levels this low could be proceeded […]
Warren Buffett has said that investing is simple, but it’s not easy, and in their latest Kiplinger’s column, value investors Whitney Tilson and John Heins explore that subject. “In The Little Book That Beats the Market, published in 2005, star money manager Joel Greenblatt describes a ‘magic formula’ for success that ranks stocks based on […]