Greenblatt’s career has since progressed from hedge fund manager to professor to author — he’s sold more than 400,000 copies of his 2005 treatise, “The Little Book That Beats the Market” — to manager of several mutual funds and a hedge fund once again.
Joel Greenblatt, Gotham Asset Management Managing Principal and Co-CIO, discusses the benefits of passive investing.
Joel Greenblatt: Passive Investing Good For Most People
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“I don’t just own Apple,” Greenblatt said, speaking hypothetically. “I own what I would say is a bucket of Apples. And I know my bucket’s going to work out because companies that gush cash and earn high returns on capital, and have nice niches, they tend to work out very well.”
“Stocks are not pieces of paper that bounce around,” he said. “As far as we’re concerned, they’re ownership shares of businesses that we value and then try to buy at a discount. So that’s value investing. Figure out what a business is worth, and pay a lot less.”