Columbia Business School

Graduate business school at Columbia University; historically significant as the home of the value investing tradition. Ben Graham taught there and developed the security analysis framework that became the foundation for Joel Greenblatt, Warren Buffett, and others.

Joel Greenblatt taught a Columbia class on investing while compounding at 49% annualized from 1985 to 2005. Six key principles from his class notes: (1) Don’t do portfolio management — think like an owner, not a portfolio manager; (2) Assess management incentives, not character; (3) All about valuation — “do good valuation work, and you’ll make good investments”; (4) Avoid leverage in concentrated portfolios — drawdowns ALWAYS occur; (5) Know your limits — only invest in what you actually understand; (6) What makes a good business (the specific criteria were shared as a visual). The class notes are publicly available as a PDF. Source: Joel Greenblatt Compounded at 49%… (tweet).

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• Joel Greenblatt Compounded at 49%… (tweet)