Part 1/4:
Investing Wisdom from Joel Greenblatt
Patience and Valuation
Greenblatt's book "The Big Secret" was about the importance of patience in investing. He told his students that if they did good valuation work, the market would eventually agree with them, even if it took weeks or years.
Stocks are ownership shares of businesses, and the market eventually gets the valuation right, even if it takes time. Patience is key.
Concentration vs. Diversification
- Greenblatt has run concentrated portfolios with just 4-6 stocks, as well as more diversified long-short strategies with hundreds of positions.