(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….
Warren Buffett
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