Joel Greenblatt Discusses the Thrill of Investing

Building Trust

Joel Greenblatt emphasizes the importance of developing trust within oneself and the investment process. He highlights that finding bargains in the market often requires looking at overlooked or discarded opportunities, which are ripe for mispricing 1. Greenblatt humorously notes the old adage of not trusting anyone over 30, suggesting that in investing, one must be their own boss and critically evaluate information 1.

You have to be your own boss. You have to look out for your caveat emptor.

--- Joel Greenblatt

This self-reliance is crucial as most people in the market have their own agendas, making it essential to do your own work and understand the investments thoroughly 1.

   

Power of Patience

Patience is a critical factor for successful investing, according to Greenblatt. He advises that having a longer time horizon can lead to better investment outcomes, as the market will eventually agree with well-researched valuations 2. Greenblatt shares that his mentors, through their writings, instilled in him the value of patience and thorough valuation work 3.

The secret to being successful is patience. The big secret that no one bought, I might as well tell everyone, is really just having a longer time horizon than most people.

--- Joel Greenblatt

He encourages investors to focus on the long-term rather than being swayed by short-term market fluctuations 2.