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Today at a Glance:
Lesson From the Book: Why Spinoff Gives high Returns
Tweet: Vijay Kedia’s advice on Market Crash
Quote from Howard Marks
Snippets: 5 Snippets from different books
Why Spinoff Gives high Returns (Book)
One last thought on why the spinoff process seems to yield such successful results for shareholders of the spinoff company and the parent: in most cases, if you examine the motivation behind a decision to pursue a spinoff, it boils down to a desire on the part of management and a company’s board of directors to increase shareholder value.
You don’t need special formulas or mathematical models to help you choose the really big winners. Logic, common sense, and a little experience are all that are required. That may sound trite but it is nevertheless true. Most professional investors don’t even think about individual spinoff situations. Either they have too many companies to follow, or they can only invest in companies of a certain type or size, or they just can’t go to the trouble of analyzing extraordinary corporate events.
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One Tweet
One Quote
Investors hold to their convictions as long as they can, but when the economic and psychological pressures become irresistible, they surrender and jump on the bandwagon.
- Howard Marks
Interesting Books Snippets shared during the Week
1. Warren Buffett's most important lesson that he learnt from Benjamin Graham (Book)
2. Over Decade long time horizons, Your investment performance will mainly be derived from how you handle corrections, bear markets and market crashes (Book)
4. Buy Good businesses and Hold them for years. (Book)
5. Twin Engines of 100 Baggers (Book)
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