Value investing strategies have worked for years and everyone's known about them. They continue to work because it's hard for people to do, for two main reasons. First, the companies that show up on the screens can be scary and not doing so well, so people find them difficult to buy. Second, there can be one-, two- or three-year periods when a strategy like this doesn't work. Most people aren't capable of sticking it out through that.
Joel GreenblattI still believe that for good business analysts a concentrated portfolio is a good strategy combined with a long term horizon. Once again, the secret to success in following the formula strategy is patience, a quality in short supply for both professionals and individual investors alike. I think investors should have a large portion of their assets in equities over time.
Joel GreenblattThe secret to investing is to figure out the value of something - and then pay a lot less.
Joel GreenblattWe are busy surviving, herding, fixating on what just happened, and being overconfident!
Joel GreenblattLook down, not up, when making your initial investment decision. If you donโt lose money, most of the remaining alternatives are good ones.
Joel GreenblattThereโs a virtuous cycle when people have to defend challenges to their ideas. Any gaps in thinking or analysis become clear pretty quickly when smart people ask good, logical questions. You canโt be a good value investor without being an independent thinker โ youโre seeing valuations that the market is not appreciating. But itโs critical that you understand why the market isnโt seeing the value you do. The back and forth that goes on in the investment process helps you get at that.
Joel Greenblatt