Newsletter - July 3rd, 2023

Dear Reader,

Attached is our latest list of stocks generated from basic value screens (low p/e, ev/ebitda, debt/equity, etc.), which don’t meet our investment criteria - and our reasoning.

This may help you avoid a few ‘value traps’ or stocks that aren’t sufficiently attractive compared to the opportunities available today.

For reports of stock ideas that pass our quantitative and qualitative standards, join at the link below:

Join Here

---

Joel Greenblatt Interview

---

Greenblatt/Ted Seides Interview

Some notes from an old Greenblatt interview:

12:45 Look Down, Not Up

Size up when you don't think you can lose money. It's not the upside potential but the downside risk that should drive your allocation.

24:15 Good businesses

Good businesses expand the margin of safety over time - better than hoping to get out of a bad business in time.

29:00 Quantamentals

Quantitative and fundamentals - The key difference with quants is to view stocks as ownership shares in businesses. Similar to the attitude of private equity.

Instead of relying on the historic performance of 'factors' or searching for correlation, focus on causation. If you do good valuation work, the market will agree with you over time.

We are simply trying to buy ownership stakes in businesses cheaply.

---

Until next time, Cheers!