Joel Greenblatt: How Warren Buffett Simplifies Smart Investing
In this interview with Barry Ritholz: Joel Greenblatt highlights Warren Buffett’s analogy comparing investing in stocks to owning businesses. He explains that if someone sold a business, analyzed local businesses, and prudently invested in eight well-researched companies, it would be seen as sensible.
However, when the same logic is applied to stocks, people view it as risky due to daily price volatility and market perceptions.
Greenblatt emphasizes that concentrating investments in well-researched opportunities is rational, whether in stocks or businesses, challenging the stigma against focused stock investing.
Here’s an excerpt from the interview:
Greenblatt: Right, well, Warren Buffett has a good response to that as…
