23 Quotes by Joel Greenblatt

The strategy of putting all your eggs in one basket and watching that basket is less risky than you might think.

Stock prices move around wildly over very short periods of time. This does not mean that the values of the underlying companies have changed very much during that same period. In effect, the stock market acts very much like a crazy guy named Mr. Market.

In short, companies that achieve a high return on capital are likely to have a special advantage of some kind. That special advantage keeps competitors from destroying the ability to earn above-average profits.

Although over the short term, Mr. Market may set stock prices based on emotion, over the long term, it is the value of the company that becomes most important to Mr. Market.

Even after you learn where to look for new ideas, the notion that you can cover even one-tenth of these special corporate events is a pipe dream.