"How Did I Manage to Make 40% CAGR" - Joel Greenblatt | Stocks | Investment

Joel Greenblatt, a legendary value investor and author of The Little Book That Beats the Market, achieved a remarkable 40% compound annual growth rate (CAGR) over two decades managing the Gotham Capital hedge fund. He accomplished this by sticking to a disciplined value investing approach rooted in Benjamin Graham’s principles. Greenblatt focused on buying good companies at bargain prices, using a formula that combined high return on capital and a low earnings yield. This “magic formula” helped him identify companies with strong fundamentals that were temporarily undervalued by the market. He maintained a concentrated portfolio, often holding just 6 to 8 stocks, which allowed each well-researched investment to significantly impact returns. Greenblatt also avoided market noise and short-term speculation, instead focusing on long-term performance. His deep understanding of accounting and ability to spot mispricings gave him a consistent edge. He emphasized patience and emotional discipline, often buying when others were fearful and selling when optimism returned. Ultimately, it was this blend of quantitative rigor, value discipline, and contrarian thinking that led to his extraordinary success. Watch our other video here:    • Super Investors   Connect with us here as well:   / thefinancialeconomics     / the_financial_economics   Applications & Software used: VSDC Video editor Pexels for Stock videos - https://www.pexels.com/videos/ Business enquiries - [email protected] #joelgreenblatt #stocks #investment #multibaggerstock #magicformula #investmentstrategy #investing #thefe #compounding #stockmarket