Joel Greenblatt Interview

I just listened to a Joel Greenblatt interview from early December 2005 ( Greenblatt NPR Interview). He says a few interesting things.

1. He recommends three stocks: GPS, AZO and LXK. If you had bought those three stocks on December 1st you'd be up 10.5%, 18.3% & 37.6%. So you'd be up over 22%. The man knows what he is talking about.
   
2. He comments that the method tells you when to buy, but isn't really good at when to sell. But that you can do very well buying at the right time. So I think that gives a bit of a green light to sell earlier or later as one sees fit.
3. He comments that in his fund that he only invests in 7 or 8 stocks. He is essentially saying that if you fully understand your investments, it is actually less risky to own fewer stocks.

Good stuff. Take a listen. It is pretty short, thought a bit dry.

Last word, it was another solid day as my MFI portfolio was up 0.5%. Hurray!