Given that you wrote the book, and thus there were no books before you wrote yours, how did you figure out how to invest in this way? How did you figure out what was important and where you could and couldn't make money?

Well, you're right.

That is a great question.

Well, I actually started, my first job was with, they didn't call them hedge funds back then, but it was with a risk arbitrage firm.

And risk arbitrage, otherwise known as merger arbitrage, involves buying a company after a merger deal is announced and hoping that it closes.

And generally, the risk reward in that business is, well, if the merger closes, you make $1, and if it breaks, you lose $10 or $15.

And that risk reward wasn't that appealing to me.

If you look back over your career, can you talk about a home run that sticks out? How did you find it? How did you build conviction?

In Greenblatt's opinion, the investment flows to passive will continue.

The reason that the wave to passive is really here to stay, I mean, whether there'll be some little travels up or down over time, big picture, you know, I gave a talk at Google a few years ago, and I started it this way.

You know, even Warren Buffett says most people should just index.

And then I said, I agree with him.

And then I left.

No, then I said, you know...

But then again, Warren Buffett doesn't index and neither do I, how come? And so there's a big dichotomy.

Mm-hmm.