Comments on: An Interesting Interview with Joel Greenblatt http://allfinancialmatters.com/2009/07/01/an-interesting-interview-with-joel-greenblatt/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 25 May 2012 20:32:49 +0000 hourly 1 http://wordpress.org/?v= By: Jack C http://allfinancialmatters.com/2009/07/01/an-interesting-interview-with-joel-greenblatt/comment-page-1/#comment-428989 Jack C Tue, 07 Jul 2009 02:30:29 +0000 http://allfinancialmatters.com/?p=3594#comment-428989 Trent, exactly right! People didn't know how to price options, until the Black-Scholes model came out and won the Nobel prize, then every damn trader's calculator has it built into it. If there's any formula that can work you to a non-zero advantage, you can be sure those thousands of big financial institutions around the world (pension funds, insurance, banks etc) will have their teams of PhD's and Nobel prize winners exploit it to the point there's no advantage left for peanut counters like you and me. So don't lose any more money on those stupid books. Trent, exactly right! People didn’t know how to price options, until the Black-Scholes model came out and won the Nobel prize, then every damn trader’s calculator has it built into it. If there’s any formula that can work you to a non-zero advantage, you can be sure those thousands of big financial institutions around the world (pension funds, insurance, banks etc) will have their teams of PhD’s and Nobel prize winners exploit it to the point there’s no advantage left for peanut counters like you and me. So don’t lose any more money on those stupid books.

]]> By: Trent Hamm http://allfinancialmatters.com/2009/07/01/an-interesting-interview-with-joel-greenblatt/comment-page-1/#comment-428566 Trent Hamm Sat, 04 Jul 2009 06:15:26 +0000 http://allfinancialmatters.com/?p=3594#comment-428566 If a formula could truly always beat the market, then everyone would use it and it would ~become~ the market. If a formula could truly always beat the market, then everyone would use it and it would ~become~ the market.

]]> By: Kirk Kinder http://allfinancialmatters.com/2009/07/01/an-interesting-interview-with-joel-greenblatt/comment-page-1/#comment-428352 Kirk Kinder Thu, 02 Jul 2009 20:50:02 +0000 http://allfinancialmatters.com/?p=3594#comment-428352 Problem is not everyone is doing value investing. We have lost touch with what true value is in the stock and real estate markets. There are so many players in the market that the system may or may not work. It is true that if everyone does it then it loses some of its value. This happened with the Dogs of the Dow as well. But, once it fell out of favor, it did better. So if you find a system that is producing great returns then wait for everyone to follow it. Then when it stops working, start using it. Problem is not everyone is doing value investing. We have lost touch with what true value is in the stock and real estate markets.

There are so many players in the market that the system may or may not work. It is true that if everyone does it then it loses some of its value. This happened with the Dogs of the Dow as well. But, once it fell out of favor, it did better. So if you find a system that is producing great returns then wait for everyone to follow it. Then when it stops working, start using it.

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