Author

Joel Greenblatt

16 key ideas across 2 books, each explained in our own words.

The Little Book That Still Beats the Market

IDEA 1
Simple ideas can beat complexity
Greenblatt sets out to explain investing simply enough for his children to understand. He argues that a few clear principles can work better than complicated strategies. The style is friendly and simple.
IDEA 2
A gum business explains value
Greenblatt uses the story of a boy named Jason who sells gum at school to explain how businesses earn money. The example shows why some businesses are worth more than others.
IDEA 3
Look for good businesses
Greenblatt describes return on capital as a measure of how well a business turns money invested into profits. High returns suggest a strong, efficient business. Such businesses can grow without needing much new money.

IDEA 1
Look where others don't
Greenblatt argues that ordinary investors can find opportunities in special situations that big institutions often ignore. These unusual corporate events can create mispriced shares. Size can be a disadvantage for big funds.
IDEA 2
Spin-offs can be overlooked
Greenblatt explains that when companies split off a division into a new company, many shareholders sell the new shares without studying them. This can push prices below value. Forced selling creates bargains.
IDEA 3
Restructurings create chances
Greenblatt describes companies selling businesses or reorganising to improve focus. Such changes can reveal value that was hidden inside a complex company. Simpler companies left behind are easier to value.

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