As head of Gotham Capital, a hedge fund based in New York, he claims to have achieved average annual returns of 40% for 20 years.
Summary of Joel Greenblatt’s Interview:
- Our strategy comes down to two things. We look for good businesses and we look for businesses selling for cheap prices. What do we mean by "good" and what do we mean by "cheap?" We define "good" as a company that earns a high return on capital and we define "cheap" as a company that earns a lot compared to the price we're paying for it.
- Why isn't everyone already using it?
- It can take three to five years before it starts showing its stuff. Over any one- or two-year period, it might not work, and that's why most people quit. Most people who don't understand what they're doing quit after one or two years of under-performance.
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Always learn from the best,
Dah Hui Lau (David)
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