(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 there are many, relatively brief articles around the internet that summarize what Greenblatt, Munger and other Superinvestors have said about spinoffs, I struggled to find an all-encompassing resource. The goal with this article is to create one.
With that, let’s dive in….
What better Superinvestor to start with than Warren Buffett? Buffett needs no introduction, but I will provide one anyway. He is broadly recognized as the best investor of all time. From 1957 to 1969, Buffett ran an investment partnership which compounded at 29.5% annually. From 1965 (the time of Buffett’s initial investment) to 2017, Berkshire Hathaway‘s share price has compounded at 20.9% annually.
Buffett has an interesting perspective on spin-offs. In his early years mana