In his latest interview on The Knowledge Project Podcast, Joel Greenblatt discussed what makes a great investor. Here’s an excerpt from the interview:
Q1 2021 hedge fund letters, conferences and more
 
(3:09) I think it’s a combination of a few things. But one it’s really just the thought process. Can they make it simple. Can they really explain in a very simple way what it is about this particular ideal investment that makes sense to them. You can see that very quickly after looking at a lot of them.
What makes a good investor is a combination of being able to do that, and passion. I learned from teaching that some people are… and also just being in the business, some people are in it for the money because if you’re pretty decent at it you tend to get way overpaid for your contribution to society. Lets put it that way.
So some people are in it for the money, and some people like solving puzzles, and figuring things out, and thinking what’s going to happen next. You can kind of tell the passion of those people that they’re just in it for the combination of challenge and interest, and those are the people long-term that tend to be the most successful, and you can see that too.
So it’s really simplicity of thought, being able to boil things down to a simple… a few simple concepts of what makes this attractive, and also passion for figuring it out.
You can watch to the entire podcast here:
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Article by The Acqirer’s Multiple
