Turo: The Next Airbnb?

Turo: The Next Airbnb? One of my favorite stocks is IAC Inc (IAC). It’s a holding company with many different ownership stakes. To value IAC, you need to do a sum-of-the-parts analysis (SOTP). Investment cases built on SOTP valuations are tricky because you don’t know when/if value will ever be unlocked. As such, they can [...]

By |2024-04-25T08:43:09-04:00April 24th, 2024|Categories: blog, Educational|Tags: , |1 Comment

A “SOTP” Horror Story

A “SOTP” Horror Story Sum-of-the-part or SOTP analysis is a key tool that I use when analyzing a spin-off. Most conglomerates trade at a “conglomerate discount” and so SOTP analysis can be useful to understand if a spin-off will create value. However, SOTP analysis cannot be followed blindly. I just published a case study on [...]

By |2023-12-05T17:15:38-05:00December 5th, 2023|Categories: Case Study, Educational|2 Comments

Seth Klarman Special Situations Investing Case Study

Seth Klarman Special Situations Investing Case Study Seth Klarman, famous value investor and CEO of Baupost Group, was recently interviewed on the “Capital Allocators” podcast. It was a terrific interview, and I recommend listening to the full conversation. Today, I want to highlight a case study that Klarman walked through. I LOVE case studies. [...]

By |2023-09-12T16:20:26-04:00September 12th, 2023|Categories: Case Study, Educational|0 Comments

3 Biases to Avoid as a Special Situations Investor

3 Biases to Avoid as a Special Situations Investor I was recently interviewed for a podcast, and the host asked me about behavioral biases. Specifically, the host asked: What are the behavioral biases most commonly found around special situation investing? For me, the 3 most relevant biases are: Disposition Effect Overconfidence Effect. Consistency Bias. Today, [...]

By |2023-06-23T16:49:20-04:00June 23rd, 2023|Categories: Educational|0 Comments

5 Ways That I Use BamSEC

5 Ways That I Use BamSEC One of my favorite investing tools out there is BamSEC. Here are the 5 ways that I use it: 1) Let's start with spin-offs.... Months before it starts trading, a spin-off will file a Form 10 with all its historical financial information. A Form 10 is similar to a [...]

By |2023-05-18T16:54:57-04:00May 18th, 2023|Categories: Educational, Investing Tools|1 Comment

Warren Buffett and Spin-offs

Warren Buffett and Spin-offs  Warren Buffett, the world’s greatest investor, has a complicated history with spin-offs. On the one hand, he’s made a lot of money investing in them. But he would never spin off a Berkshire subsidiary unless forced to by regulators. And I have to say, I agree with his seemingly contradictory [...]

By |2023-03-18T10:01:47-04:00March 18th, 2023|Categories: blog, Educational, Warren Buffett|0 Comments

How to Invest in Biotech (without being a specialist)

How to Invest in Biotech (without being a specialist) I know many investors who don’t invest in certain sectors because they require specialized expertise. A few of the most common examples: Financials Energy Biotech And there is definitely something to be said for staying within your circle of competence. But for better or worse, [...]

By |2023-03-06T10:48:53-05:00February 22nd, 2023|Categories: Educational, Stock Spin-off Case Studies|2 Comments

Learn This BEFORE You Start Trading Options

Learn This BEFORE You Start Trading Options When it comes to options trading, there’s literally an ocean of disparities in what different traders bring in terms of their technical, theoretical and practical knowledge. Because there are scant barriers to entry, you have a market where hedge funds using algorithmic trading software programmed by Math and [...]

By |2022-08-03T23:26:28-04:00August 3rd, 2022|Categories: Educational, Options|0 Comments

10 Rules for Spin-off Success

10 Rules for Spin-off Success I've been investing in spin-offs for the past 15 years and have learned many lessons. How'd I learn them? Mainly, the hard way! But today I'm sharing those lessons so you don't have to make the same mistakes. #1. Forget that “spin-offs outperform”  In aggregate, they generally will but [...]

By |2022-07-08T11:37:52-04:00July 7th, 2022|Categories: Educational|Tags: , , , , , , |0 Comments

Buffett On Inflation Over The Last 50 Years

Buffett On Inflation Over The Last 50 Years There have been four key times when Warren Buffett has given his insights on inflation in Berkshire Hathaway's annual reports since the 70s. 1979 - After explaining that Berkshire’s book value compounded 20.5% annually for the previous 15 years, Buffett comments: “But before we drown in [...]

By |2022-06-22T11:34:31-04:00June 22nd, 2022|Categories: Educational|0 Comments

Spin-offs In The 1950s

Spin-offs In The 1950s Maurece Schiller was one of the first investors to write about special situations investing. In 1959, he wrote the book “How to Profit from Special Situations in the Stock Market”. After leaving Dartmouth, Schiller went to Wall Street to work as an investment advisor. He began studying the way corporate actions [...]

By |2022-05-16T21:59:55-04:00May 16th, 2022|Categories: Educational, Spin-off Market|0 Comments

How Peter Lynch Beat The Market

How Peter Lynch Beat The Market Peter Lynch is known as one of the best stock pickers of all time. At Fidelity’s Magellan Fund, he averaged an astonishing 27.9% return over the course of 13 years. He also was a notorious fan of spin-offs. Here's what Lynch looked for when picking stocks. Look for [...]

By |2022-05-03T10:03:44-04:00April 22nd, 2022|Categories: Educational, Peter Lynch|0 Comments

How to Short a Spin-off Before It Begins Trading

How to Short a Spin-off Before It Begins Trading I love spin-offs (shocker, I know). The main reason is that the indiscriminate selling pressure associated with spin-offs allows me to buy bargains. Why do spin-offs sell off when they begin trading? Seth Klarman of the Baupost Group explains why this dynamic exists in Margin [...]

By |2021-10-06T17:43:19-04:00October 6th, 2021|Categories: Educational|Tags: , , , , |1 Comment

Why You Need to Use Twitter

Why You Need to Use Twitter I’ve wanted to write this article for a while. I delayed it time and again because I wanted to add more material. But I figure I will just publish this version, and then update the article over time. From 2006 to 2018, I worked at a large investment manager [...]

By |2021-03-16T15:23:06-04:00March 3rd, 2021|Categories: Educational|Tags: , |4 Comments
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