Joel Greenblatt Lecture on Magic Formula Investing and Valuation Process

Gotham Asset Management is the investment business of investing legend Joel Greenblatt. Greenblatt authored the book, The Little Book that Beats the Market, which introduced the concept of "Magic Formula Investing" and has completely changed the investment landscape since its publication.

Also see 2018 hedge fund scoops

Magic Formula Investing is the idea of buying good companies at cheap prices, a strategy which helped Gotham reportedly produce returns of 40% per annum for its investors from 1985 to 2006.

Greenblatt has given some more insight into how he goes about finding stocks to buy in his Special Situation Class at Columbia’s Graduate Business Program, which ran from 2002 to 2006. Based on notes compiled by an investor who audited this class,...