Joel Greenblatt Discusses the Thrill of Investing
Masters in Business
00:00
Index Plus Spreads in Bad Markets
In a run of the mill, 20 to 30% correction that lasts eight months, how would you expect this to perform? Well, those are our best markets for our spread. So obviously the index portion wouldn't do all that well, but you would want we viewed as an index and your own protection. We're buying stocks that have huge cash flows. That's why we're getting them so cheap. And so when the low bad news comes in, we didn't pay for high expectations. Our longs tend to hold up better. Our shorts are getting killed. Great spreads in bad markets.
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