5min chapter

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TIP544: Life-Changing Returns in Cyclicals & Spinoffs

We Study Billionaires - The Investor’s Podcast Network

CHAPTER

How to Find Profitable Opportunities in Spin-Offs

A study done by a consulting firm The Edge and accounting firm Deloitte that studied spin-offs from 2000 through 2014 with the parent companies having a market cap of at least $250 million. In India, which is the market that Godum focuses on, spin-offs generated an average excess return over the market index of around 36%. Seth Klarman, Joel Greenblatt, and Peter Lynch have all expressed the huge opportunities available in spin-offs.

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