In this episode, we revisit a favourite pet topic of ours on the Value Perspective, special situation investments, especially those that are driven by human biases. Our guest this week is Jim Royal, author of The Zen of Thrift Conversions. In our conversation we focus on decision making in a particularly niche field in America - thrift banks, which are also known as mutualised bank conversions. We discuss: what thrifts are and what types of thrift there are; what human biases are at play in this arena; what motivates the management of a mutualised bank to convert to a public company; what is the alignment between insiders and outsiders in the IPO process; why are thrifts attractive compared to other financial services companies; and finally, the case for buying into second step thrift conversion. Enjoy!

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