Joel Greenblatt – Common Sense for Value at Gotham Capital (Capital Allocators, EP.165)

Club Origins

The Value Investors Club, co-founded by Joel Greenblatt and John Petrie, emerged in 1999 as a platform for sharing investment ideas among a select group of talented investors. The club was inspired by the potential of the internet to connect like-minded individuals globally, allowing them to exchange insights without geographical constraints 1. Greenblatt's vision was to create a community where only the best investment ideas were shared, akin to a rigorous academic environment. He explains, "It's free to be here. Your only obligation is to share at least two ideas a year with the rest of the group" 2. This approach has fostered a vibrant community of around 500 investors, where only 2-3% of applicants gain entry, ensuring high-quality contributions.

   

Nurturing Talent

The Value Investors Club has inadvertently become a breeding ground for new investment talent, with Joel Greenblatt discovering and nurturing promising individuals through the platform. He initially backed a handful of these managers, recognizing their potential and providing them with resources to succeed 3. Although Greenblatt eventually stopped this practice due to its labor-intensive nature, he continues to support talented individuals he encounters, particularly those who remind him of his earlier investment style. He reflects, "I either have students or people that I met through the value investors club that I've given some money more to be honest, more to help them out, because I see talent and I'd like to nurture it" 3. This nurturing approach highlights Greenblatt's commitment to fostering the next generation of investors.