A focus on the principles and practices of value investing from Lampert, Buffett, Graham, Fisher, Klarman, Greenblatt and beyond.

Joel Greenblatt on CNBC: Big Secret for Small Investor

Joel Greenblatt discusses a valuated index that he developed. His concept was to create an index that that is weighted toward the cheapest valued stocks as oppose to being equally or market cap weighted like the S&P 500. His index puts emphasis on finding value as oppose to just blindly buying the market regardless of value. Greenblatt states that the results tested over a 20 year period resulted in 6 – 7% better returns per year with the same beta or risk. The majority of people aren’t going to beat the market actively investing in individual stocks; therefore, Greenblatt’s index seems like a great investment that many people could benefit from in the long term. The only bad part, it’s boring