Real-money stock picks from some of The Motley Fool's most popular analysts.
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Jim is a special-situations investor focusing on transactional events (such as spinoffs, recapitalizations, or reorganizations, among others) that create advantageous stock mispricings. Often, special situations create value through their structural complexity or through a lag in financial reporting that typically follows any change. Jim swears by guru Joel Greenblatt's You Can Be a Stock Market Genius, wherein the author explains the investing mechanics of special situations. Using this type of investing, Greenblatt was able to earn 50% annual returns for 10 years, effectively transforming an investment of $1 into $52 over just one decade.