Born in 1957, American expert stock investor Joel Greenblatt is the founder, managing principal and Co-Chief Investment Officer of Gotham Asset Management, the successor to Gotham Capital, a New York City based investment firm he founded in 1985.
Greenblatt likes stocks that are “cheap and good”. He likes stocks that are “cheap” relative to earnings in the Benjamin Graham tradition, but also strives to own stocks that are not just cheap, but also good. The “good” part comes from what Warren Buffett talked about in one of his shareholder letter back in 1992: He wanted businesses that could invest large amounts of incremental capital at very high rates of return.
Good businesses earn high returns on capital while great businesses can reinvest large amounts of capital at similarly high rates. In a nutshell, Greenblatt combines Graham and Buffett as he is looking for cheap (low price to earnings) and good (high returns on capital) stocks.
Greenblatt holds a BS, summa cum laude, and an MBA from the Wharton School of the University of Pennsylvania. Since 1996, he has been a professor on the adjunct faculty of Columbia Business School where he teaches “Value and Special Situation Investing”.
He is the author of various investment books among them the recommended “The Little Book that Beats the Market” (2005) and “You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits” (1999).