Joel Greenblatt is a US-American asset manager, author, and adjunct professor at Columbia University. In his book, he describes his investment strategy called „Magic Formula Investing“. Magic Formula Investing is an investment strategy that filters out the best stocks through two metrics; RoIC (Return on Invested Capital) and profit yield. Furthermore, Greenblatt is the founder of the website Value Investors Club where a limited number of investors share advice.
Joel Greenblatt's investment strategy prominently features exchange-traded funds (ETFs) with a significant focus on broad market exposure, as evidenced by his top holdings. Leading his portfolio is the SSgA Active Trust - SPDR S&P 500 ETF Trust, taking up 9.0% of his investments, reflecting a strong preference for well-diversified assets mirroring the performance of major US equity indices. This is followed by Tidal ETF Trust - Gotham Enhanced 500 ETF, accounting for 6.2% of his portfolio, indicating a targeted approach to harness the potential of large-cap U.S. stocks.
Greenblatt also invests in BlackRock Institutional Trust Company N.A. - iShares Core S&P 500 ETF, comprising 1.7% of his portfolio, reinforcing his propensity towards reliable index funds that track the S&P 500. In terms of individual stocks, Microsoft Corporation represents 1.4% of his investment decisions, showcasing confidence in this tech giant's enduring growth and innovation capabilities. Lastly, Apple Inc commands 1.3% of his portfolio, pointing to an esteem for robust corporate ecosystems and the perennial allure of consumer technology leaders.
These notable positions underscore Joel Greenblatt's balanced mix of passive index fund strategies with active selections of leading technology companies, serving potential investors insights into an approach centered around market-leading firms and wide-ranging diversification through ETFs.
