Joel Greenblatt Gönderileri
Joel Greenblatt kitaplarını, Joel Greenblatt sözleri ve alıntılarını, Joel Greenblatt yazarlarını, Joel Greenblatt yorumları ve incelemelerini 1000Kitap'ta bulabilirsiniz.The formula starts with a list of the largest 3,500 companies available for trading on one of the major U.S. stock exchanges.* It then assigns a rank to those companies, from 1 to 3,500, based on their return on capital. The company whose business had the highest return on capital would be assigned a rank of 1, and the company with the lowest return on capital (probably a company actually losing money) would receive a rank of 3,500. Similarly, the company that had the 232nd best return on capital would be assigned a rank of 232.
Sayfa 77Kitabı okudu
So here it comes. What do you think would happen if we simply decided to buy shares in companies that had both a high earnings yield and a high return on capital? In other words, what would happen if we decided to only buy shares in good businesses (ones with high returns on capital) but only when they were available at bargain prices (priced to give us a high earnings yield)? What would happen? Well, I’ll tell you what would happen: We would make a lot of money! (Or as Graham might put it, “The profits would be quite satisfactory!”)
Sayfa 75Kitabı okudu
Last chapter we learned that, all things being equal, if we have the choice of buying a stock with a high earnings yield (one that earns a lot relative to the price we are paying) or buying one with a low earnings yield (one that earns very little relative to the price we are paying), we might as well choose the one with the high earnings yield.
We also learned that, all things being equal, if the choice is between buying shares in a company that earns a high return on capital (a company whose stores or factories earn a lot relative to the cost to build them) and buying shares in a company that earns a low return on capital (a company whose stores or factories earn very little relative to the cost to build them, like Just Broccoli), we might as well choose the one with the high return on capital!
Sayfa 75Kitabı okudu
Graham figured that on average he would end up owning a basket of bargains. Sure, the low prices of some of the stocks would be justified. Some companies deserve low prices because their future prospects are poor. But on average, Graham figured that the purchases made by using his formula would be bargains that bargains created by Mr. Market practically giving away businesses at unreasonably low prices.
Sayfa 74Kitabı okudu
Graham’s formula involved purchasing companies whose stock prices were so low that the purchase price was actually lower than the proceeds that would be received from simply shutting down the business and selling off the company’s assets in a fire sale (he called these stocks by various names: bargain issues, net-current-asset stocks, or stocks selling below their net liquidation value).
Sayfa 73Kitabı okudu
Here comes the summary:
1. Paying a bargain price when you purchase a share in a business is a good thing. One way to do this is to purchase a business that earns more relative to the price you are paying rather than less. In other words, a higher earnings yield is better than a lower one.
2. Buying a share of a good business is better than buying a share of a bad business. One way to do this is to purchase a business that can invest its own money at high rates of return rather than purchasing a business that can only invest at lower ones. In other words, businesses that earn a high return on capital are better than businesses that earn a low return on capital.
3. Combining points 1 and 2, buying good businesses at bargain prices is the secret to making lots of money.
Sayfa 70Kitabı okudu
That’s the point—you would rather have a higher earnings yield than a lower one; you would rather the business earn more relative to the price you are paying than less!
Sayfa 66Kitabı okudu
In any case, ready or not, here comes the summary:
1. Stock prices move around wildly over very short periods of time. This does not mean that the values of the underlying companies have changed very much during that same period. In effect, the stock market acts very much like a crazy guy named Mr. Market.
2. It is a good idea to buy shares of a company at a big discount to your estimated value of those shares. Buying shares at a large discount to value will provide you with a large margin of safety and lead to safe and consistently profitable investments.
3. From what we’ve learned so far, you wouldn’t know a bargain-priced stock if it hit you in the head.
4. Being a few cards short of a full deck, you might as well keep reading.
So, here’s what you need to know:
1. Buying a share in a business means you are purchasing a portion (or percentage interest) of that business. You are then entitled to a portion of that business’s future earnings.
2. Figuring out what a business is worth involves estimating (okay, guessing) how much the business will earn in the future.
3. The earnings from your share of the profits must give you more money than you would receive by placing that same amount of money in a risk-free 10-year U.S. government bond. (Remember: Last chapter we set 6 percent as your absolute minimum annual return when government bond rates fall below 6 percent)
4. No, I haven’t forgotten about the magic formula. But you’re going to have to stop bugging me about it, okay? Sheesh!
Sayfa 49Kitabı okudu
After more than 25 years of investing professionally and after 9 years of teaching at an Ivy League business school, I am convinced of at least two things:
1. If you really want to “beat the market,” most professionals and academics can’t help you, and
2. That leaves only one real alternative: You must do it yourself.
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