Joel Greenblatt: The Intersection Of Quality And Value (Magic Formula For Stocks)
Podcast:Chit Chat Stocks Published On: Wed Jun 11 2025 Description: On this episode of Chit Chat Stocks, we research Joel Greenblatt and what we can learn from the investor who put up 50% annualized returns before fees for Gotham Capital. We discuss: (02:55) Who is Joel Greenblatt? (08:34) Gotham Capital's Performance (11:36) Special Situations Investing (12:34) Understanding Spin-Offs (19:30) Mergers and Arbitrage (23:35) Bankruptcies and Restructurings (32:35) Recapitalizations, Options, and Leaps (36:19) Understanding the Little Book: Quality Stocks at Cheap Prices (41:11) Screening for Value: EV to EBIT and ROIC (49:13) The Magic Formula: Combining Quality and Value (57:59) Lessons from Joel Greenblatt: Complexity and Homework ***************************************************** JOIN OUR NEWSLETTER AND FREE CHAT COMMUNITY: https://chitchatstocks.substack.com/ ********************************************************************* Chit Chat Stocks is presented by Interactive Brokers. Get professional pricing, global access, and premier technology with the best brokerage for investors today: https://www.interactivebrokers.com/ Interactive Brokers is a member of SIPC. ********************************************************************* FinChat.io is the complete stock research platform for fundamental investors. With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use. Use our LINK and get 15% off any premium plan: finchat.io/chitchat ********************************************************************* Bluechippers Club is a tight-knit community of stock focused investors. Members share ideas, participate in weekly calls, and compete in portfolio competitions. To join, go to Blue Chippers and apply! Link: https://bluechippersclub.com/ ********************************************************************* Disclosure: Chit Chat Stocks hosts and guests are not financial advisors, and nothing they say on this show is formal advice or a recommendation. Learn more about your ad choices. Visit megaphone.fm/adchoices