Joel Greenblatt: Legendary Investor and Author on Patience in the Investing Business

This recording, hosted by Simon, took place at the London Value Investor Conference in Summer 2024, where Joel Greenblatt was the guest speaker. Joel not only founded and runs Gotham Asset Management, but was an adjunct professor at Columbia Business School for 20+ years. Joel previously ran Gotham Capital, where he famously achieved 50% annualised returns between 1985-1994 (34.4% net). Joel also helped Michael Burry set up Scion Capital in 2000. Joel offers some exceptionally valuable insights into the issues of active versus passive, if valuation works pays, the need for patience, thoughts on concentration, and learning from mistakes. He talks on the need for detailed valuation work in order to identify compelling valuation opportunities, but also of the need for patience for the market to recognise such situations. He advocates passive for those ill-equipped to undertake detailed valuation work, and also recognises the challenges of owning too many overvalued and insufficient undervalued companies when you are passively invested. He discusses that the best way to learn from one’s investing mistakes is to lose amounts of money that matter. He also acknowledges that he would have been fired several times over, had it not been his own firm! A treasure trove of advice from a pro! Subscribe to stay up to date with our range of fascinating interviews, featuring some of the biggest names in global finance and business! TOPICS: 00:00:00 - Insights from "The Big Secret" on Patience and Market Valuation 00:02:35 - Understanding Market Dynamics and Value Investing 00:05:08 - Evaluating Individual Stocks vs. the Stock Market 00:07:47 - Valuation-Based Investing vs. Passive Investing 00:10:28 - Emotional Market Reactions and Valuations 00:12:57 - Evaluating Momentum in Risk Management 00:15:51 - The Impact of Overregulation on Small Businesses 00:17:22 - Thoughts on the US Higher Education Sector 00:18:58 - Evolution in Portfolio Management Strategies 00:21:46 - Importance of Active Management in Market Efficiency 00:24:56 - Warren Buffett's Guide: Knowing Your Circle of Competence 00:27:09 - How to Evaluate Portfolio Managers 00:30:03 - Future of Berkshire Hathaway Post-Buffett 00:32:27 - Finding Value Off the Beaten Path 00:35:26 - Impact of Changing Interest Rates on Private Markets 00:37:30 - Evaluating Long-Term Success in Blue Chip Stocks 00:40:09 - Learning from Investment Mistakes SPONSORS: - Schroders is a global investment and wealth manager, with a purpose to provide excellent investment performance to clients, through active investment management. Find out more: https://www.schroders.com/en/global/individual/ - IFM Investors are a global institutional asset manager whose purpose is to invest, protect and grow the long term retirement savings of working people. They manage investments across infrastructure, debt, listed equities and private equity assets. Find out more: https://ifminvestors.com/en-gb/ - The World Gold Council is membership organisation that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. Find out more: https://www.gold.org/ - LSEG is a leading global financial infrastructure and data provider, which plays a vital social and economic role in the world's financial system. Backed by three centuries of experience, they help 40,000+ customers in 170 countries fund innovation, manage risk & create jobs. STAY UP TO DATE ✅ Newsletter: https://www.moneymazepodcast.com/subscribe ✅ LinkedIn: https://uk.linkedin.com/company/the-money-maze-podcast ✅ X/Twitter: https://twitter.com/podcast_maze LISTEN: 🎧 Apple Podcasts: https://podcasts.apple.com/gb/podcast/the-money-maze-podcast/id1504477769 🎧 Spotify: https://open.spotify.com/show/0uT0iw8BkDIvFH12Z3GJKR DISCLAIMER All content on the Money Maze Podcast is for your general information and use only and is not intended to address your particular requirements. In particular, the content does not constitute any form of advice, recommendation, representation, endorsement or arrangement and is not intended to be relied upon by users in making (or refraining from making) any specific investment or other decisions. Guests and presenters may have positions in any of the investments discussed. The Money Maze Podcast is funded by third party advertising, with all episodes editorial - and not commercial - in relation to all interview content discussed. Please note, Money Maze Curated Podcasts do not contain third party advertising, and are instead funded by the featured interviewee and/or their business (these episodes are commercial, as opposed to editorial features).