In this episode of Chit Chat Stocks, hosts Ryan Henderson and Brett Schafer delve into the investment strategies of super investor Joel Greenblatt, known for his successful fund Gotham Capital, authorship of "You Can Be a Stock Market Genius" and "The Little Book That Beats the Market", and founding of Value Investors Club. They discuss Greenblatt's background, his focus on special situations like spin-offs, merger arbitrage, bankruptcies, and options, and his impressive investment returns. The hosts also explore Greenblatt's "magic formula" for identifying high-quality stocks at cheap prices, using metrics like enterprise value to EBIT and return on invested capital, and demonstrate how to apply these strategies using FinChat.io, encouraging listeners to conduct thorough research and not be intimidated by complexity in overlooked market segments.
