“Spin-offs are an interesting place to look because there’s a natural constituency of sellers and there’s not a natural constituency of buyers” – Seth Klarman Spin-offs always attract value investors because they tend to fly under the radar of most institutional investors. This creates a vacuum where sellers are trying to unload their position in the company following a successful value creating spin, but there is a lack of buyers as the number of investors who understand and can invest in the new corporation is small in comparison. With such a buy/sell imbalance the chance of a significant mispricing emerging…
Spin-Offs Outperform And Here's How To Profit
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk