Spin-Offs: A Source of Hidden Value

Researched and written by Jamie Grundman, who joined our team in December 2014. He’ll be contributing regularly.

The S&P 500 Index rose 11.4% in 2014 and it’s trailing price-to-earnings multiple rose 12% from 15.5x to 17.4x. This is on the back of an over 200% return since the market bottomed in March 2009. With those gains, it is getting tougher and tougher to find good companies at deeply discounted valuations. In an interview, Charlie Munger, Vice-Chairman of Berkshire Hathaway, and one of the most successful investors of all time, said “a great Read More »