The Curious Investor

You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt is one of the more interesting books I’ve read on investing. For those that don’t know, Joel Greenblatt is a value investing guru who started Gotham Capital and managed the funds to the tune of a 40% annualized return from 1985 to 1995. This book gives some really interesting insight into what it is that goes through the mind of such an investment savant.

In particular, this book discusses “special situations” investing. These situations include spinoffs, mergers, rights offerings, and recapitalizations. It’s not necessarily a traditional value investing strategy nor is this book necessarily the only book you’ll ever need. But, it does provide valuable insight into how to think about a company and its stocks as an investment. Particularly, how to spot events and situations which can create value or unlock hidden value as well as provide a catalyst for price appreciation.

The book is written very simply and is easy to understand for even the beginning investor. While it deals with situations which may prove to be a bit more complex than the average investor might be ready to deal with, it is well worth the read simply to be enlightened on the possibilities offered through “special situation.” I recommend it highly.

Bookmark to: