Topic: Joel Greenblatt
5 posts tagged “Joel Greenblatt”.
Return on Capital: The Engine of Compounding
The single most important identity in value investing: a business grows its intrinsic value at its return on capital times the share it reinvests. It explains why two companies with the same earnings growth can be worlds apart.
Owner Earnings: Cut Through the Accounting Noise
Reported profit is an opinion shaped by accounting rules; cash is a fact. Owner earnings adjust the headline number towards the cash an owner could actually take out — and reveal value that profit hides.
Hidden Gems: The Spinoff Opportunity
When a strong business is buried inside a mediocre parent, the market values the whole at a blended multiple. Spinning it off can unlock value — partly because the selling that follows is forced, not fundamental.
What Is a Moat — and How Wide?
A moat is a durable competitive advantage. Without one, high returns attract competition and fade. There are five main sources — and knowing which a business has tells you whether its returns can last.
The Magic Formula: Return on Capital Meets Earnings Yield
Joel Greenblatt's screen ranks companies on two axes at once — how good the business is, and how cheaply it trades. Together they look for quality compounders at sensible prices.