Joel Greenblatt’s Special Situation Class at Columbia’s Graduate Business Program

I have a firm, Gotham Capital; we have averaged 40% per year for 20 years.  $1,000 would now be $836,683. There are lots of smarter people who can do better spread sheets than I can; there are lots of smarter analysts than me.  I think the difference to how we have been able to do it is that we think simply and a little bit differently.

How Gotham generated great returns:

Gotham Capital stayed small.  We returned outside capital, so we could invest in as many situations as possible (not constrained by size).   We are very concentrated.  We invest in 5 to 8 securities.   Know your companies very well.   Why that is more safe than diversifying?   You pick your spots.  So if your holding period is three to five years and you only have 4 to 6 securities, then you only need one or two ideas a year.  That is why I have time to teach this class.   It is more fun and it works.

Six years ago, we found one of our best investments that was trading at ½ cash value and it had a very good business attached.  We found it because of the very complicated capital structure.  We thought we were the only ones to find it.  We found another person on Yahoo.com who had analyzed the situation correctly.   Hey, there is intelligent life out there.   Get together these smart people and share ideas.

CLICK THE LINK: Complete-notes-on-Special-Sit-Class-Joel-Greenblatt

My goal is to teach you the course that I never had and that I wish I had.   I started in business school 25 years ago.  What I know about investing other than reading financial statements, I learned on my own reading and making mistakes.  Hopefully, I can give you the benefit of my experience.

CLICK THE LINK: Complete-notes-on-Special-Sit-Class-Joel-Greenblatt

Prices fluctuate more than values—so therein lies opportunity.