Value investor Greenblatt says market in expensive range historically, likes Home Depot, Boeing


Joel Greenblatt, managing principal and co-chief investment officer of Gotham Asset Management LLC

Chris Goodney | Bloomberg | Getty Images

Joel Greenblatt, managing principal and co-chief investment officer of Gotham Asset Management LLC

Value investor and Gotham Funds co-chief investment officer Joel Greenblatt believes the market looks relatively expensive on a historical basis, but likes stocks like Home Depot and Boeing.

“We’re not buying the [S&P 500], we’re buying the cheapest stocks in the index,” he said from the Third Annual Forbes SHOOK Top Advisor Summit is Las Vegas. “Home Depot’s is a duopoly. It’s got an above-average business, trading cheaper than the market, huge returns on capital relative for the retail business. Lowe’s is their only main competitor.”

“The market overall’s expensive, but this is a better business on average than the market,” he added. “So it’s a pretty great deal.”

The founder of Gotham Capital famously had annual returns of 40 percentfrom 1985 to 2005. He wrote the New York Times best-seller “The Little Book That Still Beats the Market.”

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