IC Interviews: Joel Greenblatt

Joel Greenblatt is managing director and co-chief investment officer at Gotham Asset Management, having co-founded Gotham in 1985. His written work includes the famous tome The Little Book That Beats the Market, published in 2005, which set out his ‘magic formula’ for private investors.In this interview, he speaks to Dan Jones about the relative cheapness of certain US shares, why he is still a fan of big tech, the origins of the magic formula and its usefulness for investors, and the prospects for the UK equity market.Timestamps:00:00 - Intro00:58 - Investment philosophy04:27 - Risk-free rate in 202306:00 - Are we in a 'normal' environment?13:40 - Knowing your 'circle of competence'17:06 - Value versus growth in the last decade20:40 - The magic formula27:03 - Cash flow versus EBIT 32:00 - The UK market36:23 - Company spin-offs39:35 - Conglomerates40:37 - OutroInvestors' Chronicle has supported private investors in the UK for over 160 years by highlighting rewarding investment opportunities. Investors' Chronicle is a service by the Financial Times. Hosted on Acast. See acast.com/privacy for more information.