Spin-off is a known secret in the value investing community Part 2 | Value Investor Chatter | #63

Spin-off investing is a strategy that can result in outsized returns, as Joel Greenblatt and Charlie Munger have both noted. But what is a spin-off, and what should you look for when considering one? This video explains the basics of spin-off investing and why it is such a well-kept secret.

Episode Outline

(00:00) Exploring Spin-Offs: A Value Investor's Checklist

(02:03) Discussion on Spinoff Investing Benefits and Considerations

(04:53) Discussion on Spinoffs and Unlocking Value

(06:42) Discussion on Unlocking Value Through Spinoffs: Earnings Volatility and Valuation Considerations

(09:38) "Exploring the Benefits of Spinning Off Asset-Heavy and Asset-Light Businesses"

(15:02) Discussion of Laquinta's Sandbagging of Numbers and its Impact on Performance

(16:51) Analysis of LaQuinta Spinoff: Examining Management and Incentive Structures

(21:46) Understanding Spinoff Investment Opportunities: A Discussion on Timelines and Catalytic Events

(22:52) Discussion on Spinoff Businesses and Unlocking Value

(24:39) Exploring Spinoff Opportunities in the Stock Market

Value Investor Chatter

Facebook: https://web.facebook.com/valueinvestor49

Twitter: https://twitter.com/valueinvestor49

TikTok: https://www.tiktok.com/@valueinvestor49

LinkedIn: https://www.linkedin.com/company/valueinvestor49/

Website: https://valueinvestor.org/