Joel Greenblatt - Value Investor

I came across this interview that Joel Greenblatt gave to Forbes. Joel covers a number of different topics but talks amongst other things about trackers and indexing. A problem with indexing is that most indexes are market cap rated. This means that as bubbles form your tracker is naturally weighted towards the inflated (bubbling) stock. He suggests that a value weighted index, also a product offered by his company, is a better solution. The idea that this is a fundamantal problem with indexes was something that I first came across from Parag Parikh. Another observation from Joel is that the stock market is becoming ever more short term. This is something that benefits the Value Investor.

The interview is excellent. Here is the video.

If you prefer text a full copy of the text of the interview is published by Forbes here.