Stock Spin-off Interviews from the Money Show Last month, I had the pleasure of presenting at the Money Show in Philadelphia. My talk was titled How to Profit from Stock Spin-offs. The event was a lot of fun, and I'm planning to attend additional Money Show events going forward (I will be at [...]
Why Do Spin-offs Outperform? While not every spin-off will outperform (I’ve learned this lesson the hard way), on average, they do quite well. See below for long-term performance of Bloomberg spin-off Index vs. the S&P 500. What drives the outperformance? Usually stock spin-offs begin trading at a low valuation. This occurs for a couple [...]
My Interview on Investing in Stock Spin-offs Last week, I had the pleasure of speaking with Greggory Miller of Spin-off Investing Simplified. It was a great conversation and Gregg was kind enough to record the conversation. I've posted segments of the interview below for those who are interested. Why Invest in Stock [...]
(This article was originally published in February 2016, but I wanted to update it to add Warren Buffett and Mohnish Pabrai’s perspective on spinoffs) I’ve known for a while that many of the world’s Superinvestors advocate investing in spinoffs. After all, that’s one of the reasons why I originally became interested in researching spinoffs. While [...]
A reader of blog recently asked me the following question: “Is there a way to tell when the initial selling pressure has ceased by looking at volume or something? How long does it typically take?” This is a great question, and I apologize that it took me so long to answer. At the heart of [...]
I wanted to share a quick stock spinoff analysis. I downloaded all the stock spinoff data that was available on Bloomberg and then analyzed total 1 year return, 3 year return and 5 year return, by market capitalization. Here is one key takeaway: microcap spinoffs outperform in year 1. Specifically, “Less than $500mm Market Cap Spinoffs,” [...]