Joel Greenblatt’s Top 5 Stock Picks

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Below are the top 5 picks of Joel Greenblatt’s portfolio. For a comprehensive list please see Joel Greenblatt’s Portfolio and Recent Buys.

5. Facebook, Inc. (NASDAQ: FB)

After a stunning rally in 2020, shares of Facebook (NASDAQ: FB) are struggling to trade in the green this year. The legendary value investor sold 5% of his position during the fourth quarter to capitalize on robust share price appreciation in the pandemic year. Facebook ranks 5th on the list of Joel Greenblatt’s top picks.

Kinsman Oak Capital Partners Inc., an independent Toronto-based boutique investment firm, highlighted a few stocks including Facebook in an investor letter. Here’s what Kinsman Oak Capital Partners stated:

“Our view on Facebook (FB) may be somewhat controversial. The bear case for FB boils down to antitrust risk and valuation. Facebook, although to a lesser degree, is a relative value bargain as well. We believe the company possesses an element of platform risk that Alphabet does not but, compared to the rest of the market, the stock still seems undervalued. We compared Facebook to the Russell 2000, an index full of cyclical businesses that are considered no-brainers at the beginning of a recovery and popular re-opening stocks that are poised to go higher after the vaccine is distributed (Appendix E). Facebook is significantly cheaper, growing faster, has a larger economic moat, superior margin profile, and requires less capex. In short, we believe the obfuscated earnings power makes Facebook appear more expensive than it really is.”

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