YouSaid · the spoken record

Joel Greenblatt

lines on the record: 116
first: 2018-04-20
most recent: 2018-04-20
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“And you know, I was just like a little tiny deal, and I wouldn't give in because, you know, like I said, I had a bottom line, which is pretty rare for me.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“When I was in the room with him, I wanted the terms that I wanted to run the money because it was going to be my life and I only had one to give. And this was one of 30 deals. And so I wouldn't give in, and we sat in there for an hour while he kept Ronald Perman waiting because he was about to buy Revlon.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so it wasn't quite as easy as that. I had to negotiate my terms. It was actually kind of a funny story because it was my life and he did, you know, I don't know if at the time, 20, 30 deals a day, I have no idea, but it was my life, and I'm not a very good negotiator at all.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, the simple story is that I had a friend at Wharton who was one of the first people who was in Michael Milkin's group. And I had been working at a hedge fund for about three years after graduating from Wharton. And I had always wanted to go out on my own. And I felt I was ready. And I mentioned it to my friend. And I said, if I could raise X dollars, I'd go out on my own. And my good friend gave me a call the next day and said, Mike said fine.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“My valuations, even if I'm right, over the next two years. But that doesn't mean we're going to stop doing what we're doing. That's what stocks are. Ownership shares of businesses, and that's very fundamental to the way we look at everything. And if you actually look at them that way, you can see all of modern portfolio theory and all of the way most academics and many advisors and managers look at the world. It just seems kind of insane when you really boil it down to ownership shares of businesses that you're trying to value. And then you can really sift through all the confusion that very smart people have tried to Put a lot of numbers. On the investment business that don't make a lot of sense.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Or it could be that it's not so hard to figure out a stock used to be down here and now it's up here and there's plenty of data and computers and ability to crunch numbers and plus plenty of research papers that say that momentum's worked over a period of 30, 40 years. And maybe if it doesn't work over the next two years, the trade has become crowded and it's degraded. And that's why it didn't work over the next two years. And two years from now, I wouldn't know whether it's just cyclically out of favor or the trade's degraded. So that's why I'm not a momentum investor. The reason I'm a value investor, according to our definition, is stocks are actually ownership shares of businesses that you value and try to buy at a discount. They're not pieces of paper that bounce around that you put sharp ratios and sortino ratios and use computer simulations to balance your portfolios or whatever it is. Basically their ownership shares of businesses that you value and try to buy at a discount. So it's certainly possible that the market does not reward”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Low price sales. It really has to do with the cash flow generating Part of the business, so you know, it does not bother me that traditional value as defined by Morningstar or Russell or whoever else defines it with sort of factor-like attributes of individual stocks has or has not worked. I mean, here's the big thing. The way I describe it is, look, momentum has worked well for the last 30, 40 years, not just in this country, but across the globe with one or two exceptions. The reason we don't, we're not momentum investors, and there's no argument about it. It has. It's just that if it didn't work for the next two years, it could be that it's just cyclically out of favor like we're talking about. No, all you have to do is be patient. And it works over the long term. You just have to be a patient investor.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Now and categorized is not my definition of value. So what traditionally when people characterize these things, low priced book, low price sales, those are things that have correlated well in the past with higher return cyclically, but over time it tends to work because let's say low priced book something selling it close to its book value, well, that just means people aren't giving a very high value to the business itself. They're just sort of valuing it pretty close to the cost of the assets that were placed in the business and not giving much of a premium. So you would tend to get more than your fair share of companies that are out of favor, meaning because they're price low. But if you are a private equity firm trying to buy a business, you're not buying it because it's trading close to its book value. You're looking at cash flows and trying to project what they're going to be in the future and what are you paying relative to that and what's it worth? And that has nothing to do with low price books.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Right, well, my definition of value is figure out what the business is worth and pay a lot less. It is not low priced to book, low price sales, investing, which if you took a look at Morningstar, you took a look at Russell and they analyze what we do, they don't put us in value as value investors. They put us in blend. As Warren Buffett would say, value and growth are tied at the hip. Growth is part of value. So the way that it's traditionally done.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“And that was pretty much every stock had that kind of range every year, and it didn't make sense to me that the fundamentals of the underlying businesses were actually changing that much. And so when I read Ben Graham, sort of a light bulb went off, just this little article. Then I started reading everything I could about what he had written, both security analysis and the intelligent investor, and eventually led my way to Warren Buffett and sort of the rest is history. It's a very good age. Younger than 21 at the time, you know, junior year of College to recognize that This was what I was going to be doing the rest of my life.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Calculated gamble. And what they were telling me was don't try. They were saying that no one can beat the market and the stock prices are efficient. And just through simple observation, looking at the newspaper, and they used to have the 52 week high low prices in the newspaper, it seemed unreasonable that, you know, the fair price was 51 day and eight months later. It was 120.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, junior year, I read an article actually in Forbes magazine about Ben Graham's stock picking formula. And it was really what they used to call net nets or stock selling below their liquidation value. And it seemed very simple to me because I was at Wharton at the time and they were learning efficient market theory. And none of it resonated with me. I was kind of, like I said, interested in gambling or at least speculating or figuring things out and then taking.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you know, when you hold your dollars and it buys less and less each year, but less and less was like six or eight percent, not half a percent or one percent of what we've become used to in the last 10 years or so.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I got a summer job on Wall Street first at Kitter Peabody in their research department. And to tell you how long ago it was, we were adjusting financial statements for inflation, which probably wouldn't be a big seller right now.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, we had very high odds. It was close to 99 to 1, I think. Which I think is as high as they let it go. And so we thought we were going to clean up. And of course we lost. You know, that dog had been running a shorter race. That's why it only ran 32 seconds. And so you sort of really have to know something when you're betting. And the same thing for investing. You know, if you don't know what you're doing, it's they say an expensive place to find out. The dog track, I think, was a nice lesson losing $2 or $4. It was a very cheap lesson for us.”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I wrote up in the book that, you know, the only place when I was younger I kind of liked gambling and the only place that would let us sneak in was the dog track when I was on vacation in Florida. And so I used to sneak in with my cousin. And we got to place bets and have a good time. And, you know, half the fun was sneaking in. But we figured we really had the whole dog track thing nailed when we found a dog that had run its last race in 32 seconds and all the other dogs had run it in 44 seconds and we thought wow you know we really have a great dog we're going to bet on this thing”
2018-04-20 · Masters in Business · Joel Greenblatt Discusses the Thrill of Investing · IDENTIFIED FROM THE TRANSCRIPT · source