Joel Greenblatt Biography, Age, Wife, Books, Net Worth, Value Investing, Magic Formula, Twitter

Joel Greenblatt Biography

Joel Greenblatt is an American  legendary value investor renowned for his contribution of The Magic Formula. Greenblatt founded the hedge fund, Gotham Capital, in 1985 with an initial investment of $7 million major portion of which was provided by Michael Milken, a junk bond king. Greenblatt serves as a Managing Principal and Co-COP at the recently established value based fund, Gotham Asset Management, LLC, which is intended for  institutional and retail investors.

Greenblatt is also the founder of New York Securities Auction Corporation (NYSAC). Since 1993, Greenblatt has been the Chairman and Principal Executive Officer at St Lawrence Seaway Corp. Finally, he is a Director as the prestigious value firm, Pzena Investment Management.

Joel Greenblatt Age

The American investor and writer Joel was born in Great Neck, New York on  December 13, 1957 is currently 61 years old as of 2109.

Joel Greenblatt Education

Greenblatt is a graduate of The Wharton School at the University of Pennsylvania, receiving his B.S. in 1979 and M.B.A. in 1980

Joel Greenblatt Wife

Joel has remained tight lipped about her personal affair.Information about Greenblatt’s wife is unknown but will be updated soon.

Joel Greenblatt
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Joel Greenblatt Career

is a legendary value investor renowned for his contribution of ‘The Magic Formula’. Greenblatt founded the hedge fund, Gotham Capital, in 1985 with an initial investment of $7 million  major portion of which was provided by Michael Milken, a junk-bond king. Greenblatt serves as a Managing Principal and Co-COP at the recently established value-based fund, Gotham Asset Management, LLC, which is intended for  institutional and retail investors.

Greenblatt is also the founder of New York Securities Auction Corporation (NYSAC). Since 1993, Greenblatt has been the Chairman and Principal Executive Officer at St Lawrence Seaway Corp. Finally, he is a Director as the prestigious value firm, Pzena Investment Management.

Prior to his focus on value investing, Greenblatt worked as a Special Adviser at Rhapsody Acquisition Corp and Arpeggio Acquisition Corp. He is known as a former Chairman of Alliant Techsystems. Currently, along with his extended line of work, he is teaching Value and Special Situation Investing as an Adjunct Professor at Columbia University Business School.

Greenblatt is the author of 2 best sellers ‘You Can Be a Stock Market Genius’ and ‘The Little Book That Beats the Market’, which have inspired and changed the outlook of many investors all across the world. He recently released a new book, ‘The Big Secret for the Small Investor’.

Joel Greenblatt Books

You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits. (1999).

This is the first book published by Joel Greenblatt which became an instant best seller. The book describes the journey of Greenblatt himself which led to his success in the investment market which earned him 50% returns. The main theme of the book is to discover investment opportunities by looking where no one else is looking. In the book, Greenblatt reveals four situations which lead to potential profit growth of the company, these include, spin-offs, risk arbitrage and merger securities, corporate restructuring and stub stocks, warrants, options, and LEAPs. The writing style is light-hearted and a simple insightful read for all kinds of investors.

The Little Book That Beats the Market. (2005).

This second book of Joel Greenblatt elaborates on his famous concept of The Magic Formula. The basic theme of the book revolves around the idea of concentrating on investing in stocks that are underpriced and not taking into consideration the market capitalization of the company. By underpriced, he means the stocks which are priced without taking into consideration the growth potential of the company. The book has gained such popularity in the finance world that it has been re-published as ‘The Little Book That STILL Beats the Market’.

The Big Secret for the Small Investor: A New Route to Long-Term Investment Success. (2011).

The latest addition of Joel Greenblatt delivers like his previous two book. The book explains in simple words and illustrations the ‘Big Secret’ of value investing. The Big Secret is the value-weighted index approach to investing which contradicts the popular weighing method adopted by renowned indexes like S&P 500. The book compiles the investment strategies mentioned in the previous two books and further strengthens the argument of investing in stocks with low prices but high growth potential.

Joel Greenblatt Net Worth

He also serves as an adjunct professor at Columbia Business School, a position he has held since 1996. With all of this, it’s no wonder that Greenblatt’s net worth is estimated to be around $500 million.

Joel Greenblatt Value Investing

Joel who is the author of several books catered towards individual investors looking to beat the market. In this interview, he laid out his views on several important questions, namely: whether an individual can succeed when going up against institutions and whether the market is too short-term oriented.

This isn’t to say that index investing is always the wrong move; in fact, Greenblatt said at a different point in the interview that indices outperform 70% of managers. But the key thing about indices is that they suffer from the systematic error of overweighting overpriced companies. This is distinct from the random errors that will occur in any portfolio as a natural consequence of variance and volatility in the markets.

Greenblatt’s point is that these systematic errors cost index investors around 2% in returns a year. Individuals should seek to counteract them by either following an active value investing strategy, or by buying equal-weight indices that do not suffer from the same systematic error.

Joel Greenblatt Magic Formula

MagicFormulaInvesting.com is not an investment adviser, brokerage firm, or investment company. “Magic Formula” is a term used to describe the investment strategy explained in The Little Book That Beats the Market. There is nothing “magical” about the formula, and the use of the formula does not guarantee performance or investment success. MagicFormulaInvesting.com is owned by an entity controlled in part by Joel Greenblatt.

Joel Greenblatt Quotes

  • “The way we make money as a group is that we don’t pay a lot for anything, and most of the stocks we buy have low expectations,”
  • “Figure out what something is worth and pay a lot less.”
  • “If I plug my estimates into the Magic Formula, and it comes out cheap, that’s good.”
  • “There’s a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions. You can’t be a good value investor without being an independent thinker – you’re seeing valuations that the market is not appreciating. But it’s critical that you understand why the market isn’t seeing the value you do. The back and forth that goes on in the investment process helps you get at that.”

Joel Greenblatt Twitter