TIP677: You Can Be a Stock Market Genius w/ Roger Fan

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 22 November 2024

⏱️ 74 minutes

🔗️ Recording | iTunes | RSS

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Summary

On today’s episode, Clay is joined by Roger Fan to discuss Joel Greenblatt’s book, “You can be a Stock Market Genius.” Joel Greenblatt is one of the greatest hedge fund managers of all time. Greenblatt famously averaged 40% a year over 20 years. At that rate, $1 million grows into $836 million. He’s also the author of best-selling classics like “The Little Book that Beats the Market” and was a key character in William Green’s book, “Richer, Wiser, Happier.” Roger Fan is the Chief Investment Officer at RF Capital Management. RF Capital seeks to achieve superior risk-adjusted returns by investing in obscure, undervalued companies globally. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro 02:22 - An overview of Joel Greenblatt’s background as an investor, author, teacher, and philanthropist. 06:22 - Why Greenblatt focused much of his attention on special situations to beat the market. 10:47 - What a spinoff is and why they are ripe hunting grounds for mispricings. 19:04 - One of Greenblatt’s favorite case studies for spinoffs. 21:01 - The three key characteristics to look for in a spinoff transaction for investors. 33:50 - How Joel Greenblatt views investing in bankruptcy deals. 58:50 - Which special situations Roger prefers to invest in. 01:11:03 - How Roger approaches concentration in his portfolio. And so much more! Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Roger’s Firm: RF Capital Management. Joel Greenblatt’s books: You Can Be a Stock Market Genius, The Little Book That Beats the Market. Related Episode: RWH003: How To Win The Investing Game w/ Joel Greenblatt. Related Episode: TIP339: Common Sense Investing w/ Joel Greenblatt. Follow Roger on Twitter & LinkedIn. Follow Clay on Twitter. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: River 7-Eleven Toyota Daloopa TastyTrade The Bitcoin Way Connect Invest Fundrise American Express Miro Onramp Public Facet SimpleMining Bluehost ReMarkable Vanta Shopify HELP US OUT! Help us reach new listeners by leaving us a rating and review on Spotify! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.8	On today's episode, I'm joined by my friend Roger Fan to discuss Joel Greenblatt's book,
0:07.9	You Can Be a Stock Market Genius.
0:10.3	Joel Greenblatt is one of the greatest hedge fund managers of all time, as he famously
0:14.6	averaged 40% a year over 20 years.
0:18.2	At that rate, $1 million grows into $836 million. Greenblatt is also the author of
0:24.7	best-selling classics like The Little Book that Beats the Market and was a key character
0:29.0	in William Green's book, Richer, Wiser, Happier. Now, my guest today is Roger Fan, who's the
0:34.2	chief investment officer at RF Capital Management, and he likes to invest
0:38.1	in these types of businesses that are discussed in Greenblatt's book, You Can Be a Stock Market
0:42.2	Genius, which is special situations.
0:45.2	Rogers' returns at RF Capital since inception in 2017 are 14% versus 12% for the S&P 500, and over
0:53.0	the past five years, he's had returns of 19.3% per year,
0:57.8	generating 6 percentage points in alpha over that time period. During this conversation,
1:02.7	Roger and I give an overview of Joel Greenblatt's background as an investor, author,
1:06.9	teacher, and philanthropist, why Greenblatt focused much of his attention on special situations
1:11.9	to beat the market, what a spinoff is and why they are ripe hunting grounds for mispricings,
1:17.1	one of Greenblatt's favorite case studies for spinoffs, the three key characteristics to look
1:21.6	for in a spinoff transaction for investors, how Joel Greenblatt views investing in bankruptcy
1:26.2	deals in risk arbitrage situations, which
1:29.1	situations Roger prefers to invest in, and whether he's adopted Greenblatt's highly concentrated
1:34.1	investing approach and much more. This was a great chat with a sharp investor, so I hope
	...

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