Last Updated on April 17, 2024 by Ben
Joel Greenblatt is an investor and proprietor of a hedge fund renowned for his opaque personal life, charitable contributions to public education, and, most notably, for inventing the “magic formula investing” strategy that has brought him enormous financial success over the years. His company, Gotham Capital, is also renowned for profiting from the 2007 housing market crisis.
Numerous market observers have pondered, “What is Joel Greenblatt’s net worth?” because so little is known about the individual. To discover the answer, we compiled all publicly available information about Mr. Greenblatt’s wealth and calculated the most accurate estimate of his net worth.
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What Is Joel Greenblatt Net Worth?
According to our research, Joel Greenblatt’s net worth is approximately $500 million. This number is derived from credible online sources calculating the difference between his estimated personal assets and liabilities.
This is, however, an approximate estimate of Joel Greenblatt’s wealth. Mr. Greenblatt is not required by Securities and Exchange Commission (SEC) regulations to disclose his financial positions because he does not own a publicly traded company. Therefore, it is impossible to determine his precise net worth with certainty.
Joel Greenblatt Biography
Joel Greenblatt was born in the Great Neck region of Long Island, New York, on December 13, 1957. Neither Mr. Greenblatt’s upbringing nor his current family life is well-known.
Mr. Greenblatt, a graduate of the Wharton School’s M.B.A. program, was a successful student who published an original research article on value investing in a peer-reviewed journal while still a graduate student. Mr. Greenblatt, like many successful fund managers, attended law school, albeit briefly. He left Stanford Law School after one year to pursue opportunities in finance.
After graduating from law school, he established Gotham Capital with $7 million provided by Michael Milken. In 2000, Mr. Greenblatt invested $1 million in the developing hedge fund of Dr. Michael Burry, Scion Capital, representing 25% of the fund’s assets. In the late 2000s, when Greenblatt closed the short position in the U.S. housing market, Greenblatt’s fund was exceedingly profitable due to Scion’s short position.
Mr. Greenlatt has a demonstrated ability as a value investor to identify undervalued companies but also the social potential of charitable initiatives in his native New York City. In this respect, he can identify companies with growth potential, grassroots community organizations, and public service organizations.
How Did Joel Greenblatt Build His Wealth?
Gotham Asset Management, the successor to Gotham Capital, accounts for the preponderance of Joel Greenblatt’s wealth. Between its first year of operation in 1985 and its final year in 1994, Gotham generated impressive average annual net returns of 34%.
Gotham Asset Management LLC manages approximately $4.1 billion of discretionary assets for 51 clients. According to their 13F filings, the firm has approximately $2.36 billion in managed securities, with Microsoft Corp. being its largest holding.
In the late 2000s, during the height of the global financial crisis, Mr. Greenblatt’s wealth skyrocketed. Since a significant portion of Greenblatt’s wealth was invested in Dr. Michael Burry’s Scion Capital fund, the success of Burry’s shorting of the U.S. housing market led to a substantial increase in Greenblatt’s net worth. In the 2015 film The Big Short, Greenblatt and Burry were portrayed.
Mr. Greenblatt’s position as Managing Principal and Co-Chief Investment Officer at Gotham Asset Management has contributed significantly to his wealth. Additional sources of capital include his primary residence in New York City, his secondary residence, and his salary as an adjunct professor at Columbia Business School.
Lastly, Joel is an accomplished public speaker and author who earns book royalties and commands high keynote speaking and consultation fees. Although his speaking fees are unknown to the public, it is reasonable to presume that he charges several thousand dollars per appearance. His bibliography comprises the passive income-generating works listed below:
- You Can Be a Genius on the Stock Market: Learn the Secret Places to Hide Stock Market Profits (Simon & Schuster, 1997)
- The Little Book That Destroys the Competition (Wiley & Sons, 2006)
- A New Path to Long-Term Investment Success for Small Investors Is Revealed (Crown Publishing Group, 2011)
How Is Joel Greenblatt Net Worth Calculated?
Joel Greenblatt’s net worth is determined in the same manner as any other individual: by subtracting their total liabilities from the value of their assets. Mr. Greenblatt’s net worth is the positive difference between his assets and liabilities. These numbers are derived from the financial statements of Gotham Asset Management, his investment fund.
Who Else Invests Like Joel Greenblatt?
Only some investors have the same approach. To compare investors similar to Joel Greenblatt, consult the following investor profiles:
- John Paul Dejoria
- Katrina Lake
- Daymond Garfield John
- Kevin O’Leary
- Jim Cramer
- Jim Treliving
- Ali Webb
Want to Invest Like Joel Greenblatt?
Joel Greenblatt amassed his fortune by bucking the norm. At a time when Benjamin Graham’s principles of fundamental analysis reigned supreme, Mr. Greenblatt defied the efficient market hypothesis by placing strategic wagers on undervalued companies.
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Pros and Cons of Joel Greenblatt Net Worth
Pros:
- He is an experienced investor and has a long track record of success.
- Greenblatt’s approach to value investing is highly respected in finance.
- His immense net worth makes him one of the top investors in the world.
Cons:
- His approach may be too aggressive for some investors and unsuitable for all portfolio goals.
- His strategy focuses on capital gains, which come with tax implications.
- Investing in his funds can be expensive due to their high fees.
Final Thought – Joel Greenblatt Net Worth
Joel Greenblatt is a respected investor with an impressive track record of success. His approach to value investing has made him one of the wealthiest investors in the world. However, the high tax implications associated with his strategy may only be suitable for some investors. Assessing your financial goals and risk tolerance before making investment decisions is essential. By doing so, you can be sure to make the right decision for your individual needs.