Spin-off is a known secret in the value investing community Part 1 | Value Investor Chatter | #62
Value Investor Chatter
English - July 04, 2019 21:40 - 29 minutes - 27.7 MB - ★★★★★ - 32 ratingsInvesting Business News Business News stock market stock penny stocks stocks stockcharts stock quotes online stock trading buy stocks online investing in stocks buy stocks Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Spin-off investing is a strategy that can lead to outsized returns. Joel Greenblatt and Charlie Munger, two well-known value investors, have both spoken about the potential of spin-offs. So what is a spin-off? And what should you look for if you're interested in this strategy? A spin-off is a type of corporate restructuring where a company splits off a portion of its business into a new, independently-operated company. There are a few different reasons why a company might do this, but usually, it's to unlock value that was hidden within the parent company. For example, a company might have a division that is significantly underperforming the rest of the business. By spinning that division off into a separate company, the parent company can focus on its core business and the new company can try to turn things around.
Episode Outline
(00:00) Exploring Spin-Offs: A Value Investor's Guide to Special Situations and Outsized Returns
(02:36) Exploring the Benefits of Investing in Spinoffs
(09:31) Exploring Spinoffs as an Investment Opportunity for Institutional Investors
(11:51) Discussion on Spinoff Investing Strategies
(12:53) Analysis of Spin-Off Companies: Examining the Impact of Parent Companies on Child Companies
(15:40) Discussion on Reasons for Spinoffs and Their Impact on Institutional Investors
(16:50) Discussion of Downward Pressure on Price of Spinoff Companies
(18:56) Understanding the Impact of Spinoffs on Stock Prices
(19:47) Exploring the Benefits of Spinoffs in Investing
(23:04) Analysis of LaQuinta Hotel Chain's Spinoff and Corepoint's Performance
(25:37) Exploring Spinoffs: Unlocking Value and Potential Returns
(27:48) Discussion on Spinoffs and Value Investing
Value Investor Chatter
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