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Joel Greenblatt on Relative Value Investing (Podcast)

Masters in Business

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Leverage Low Profitable Companies

I guess what I would be looking for is companies that borrow a lot of money and lose money, don't have, and aren't the next Google and Amazon. There'll be some winners in that group, but most of them will have their comeuppets where eventually you have to earn money. So leverage low profitable companies. Some people would call that low quality versus high quality. Is that a ratio worth considering? You know, I hate making generalizations. We really look at the market. I'm trying to pin you down with a really general backwards looking future forecast.

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