Joel Greenblatt is an investor, hedge fund manager, and author of “Magic Formula Investing.” He is also popular for his donations to the New York City school system, to which he donated $2.5 million to an elementary school in Queens. All of his financial endeavors and investments have helped him to earn a net worth of approximately $500 Million, which is still increasing every day with his continuing financial investments.
Greenblatt is very popular in the business world, with participation in multiple companies. In 1985, Greenblatt began Gotham Capital, a hedge fund with $7 million, which earned 40% annualized return for twenty years. Value Investors Club is another one of his ventures, in which investors approved through an application process exchange value and special situation investment ideas. The membership for this project is limited to 250 members.
Greenblatt is responsible for writing a book, which is called The Little Book That Beats the Market. In this book, Greenblatt introduced the concept of “magic formula investing,” which helps the novice investor learn to select stocks that sell at a low rate for reputable companies. His method allows individuals to achieve high earnings yield and a high return on investment capital. His method was a featured topic in The Guru Investor by John P. Reese.
In 2009, Greenblatt decided to begin an online money management firm called Formula Investing. The website focuses on the strategies that Greenblatt wrote about in his book and uses them in real life applications. The firm is designed for individual investors and institutions and registered investment advisors, who can use Formula Investing as a sub-advisor. The program allows individuals to focus on financial discipline, preventing them from making rookie mistakes based on emotion and estimated future projections.
Presently, Greenblatt works an adjunct professor at the Columbia University Graduate School of Business.