Joel Greenblatt Interview

I just watched the Joel Greenblatt interview on CNBC. Most of what he said, was certainly familiar to people who have read the book. But the part I found interesting was at the very end. He was asked if he had a stock that is currently on the list that he liked and he refused to answer, highlighting the importance of having a broad portfolio. He commented (and I am paraphrasing) that if any knowing person went down the list of stocks on the list he/she would find a reason NOT to buy any specific stock. In other words, virtually all the stocks are on the list because there is something "wrong". A bad quarter, a restatement of financials, a out-of--favor industry, loss of a major contract/client.

So given that, are any of us smart enough to know which ones to pick? I say no. Rather use a mechanical approach like I have laid out, or create your own. But I think we need to take our emotions out of it.

I had three stocks report earnings today:

PFE - Had a good quarter, and was up nicely early today (Pfizer Third Quarter Profit Rises). But ended up down. Still, it was nice to have a good earnings report.

FRX - I guess they did a bit worse than expected (Forest Labs trims 2010 outlook on higher R&D costs).

PVSW - they announced after the bell this evening (Pervasive Software Reports Results for Its First Quarter of Fiscal Year 2010). I think they were pretty much as expected as they had already pre-announced.

BTW, my glimpse of being above the green bar was short lived. Back below today. I did take a picture though!