Last week Barry sat down for an amazing conversation with Joel Greenblatt, author of You Can Be a Stock Market Genius (originally titled Any Fool Can Be a Stock Market Genius).
Greenblatt tells a story about when he went to a school in Harlem to talk with kids about investing. To explain how markets work and how they influence behavior, he brought a jar of jelly beans into the class room and had the kids write down how many beans they thought were in the jar. The average guess was 1771, remarkably close to the actual number, 1776. Before he revealed the average guess, he went around the room one by one asking the kids publicly how many beans were in the jar. This time the average was 850 .The second guess is the stock market.
To be a good stock picker is to be cold and calculating and not easily influenced by the crowd. Easy to say, damn hard to do. Oh yeah, and you have to be right more often than you’re wrong. That’s also important.
This was my favorite MIB of the year, highly recommend taking the time to listen.