Home Finance Joel Greenblatt, Loyal Follower of Warren Buffett

Joel Greenblatt, Loyal Follower of Warren Buffett


He believes his success comes from reading the classic writings of Warren Buffett and Ben Graham.

His Gotham Index Plus Fund (GINDX) has outperformed 94% of competitors over the past three years.

His advice to you:

  1. “Well, I can buy a lot of this, not because I think I’m going to make 10x my money, but because in worst case I can lose a dollar or two, and best case I can make five or 10.”
  2. You always want to make sure that the deck is stacked in your favor. He wouldn’t place an outsize bet on a stock in which he stands to lose a lot and make a little.
  3. “Look in places where other people are not,” he said. “Anything changing, anything extraordinary, anything off the beaten path, anything small, everything obscure, anything complicated – you name it.
  4. Try to sniff out the stocks that no one else is paying attention to. You’re much less likely to come across a bargain if you’re looking in the same spots as everyone else.
  5. Always look out for “special situations,” including merger arbitrage, recapitalizations, and spin-offs.
  6. ELITE-SUMMIT-H2-2020_200x200Look for the low-hanging fruit. “Where I think I look at investing is looking for easy ones.” Buffett calls them ‘1-foot hurdles.’ Why look for 10-foot hurdles where I have to decide what’s going to happen in that industry five years from now? It’s hard enough as it is. If I can’t figure it out, I move on.”

You can do all that, or you can just invest in his Gotham Index Plus Fund or Warren Buffett’s Birkshire Hathoway stock.