Business Quote by Whitney Tilson
“Many significant stock-price inefficiencies can occur when a company is spun off.”
About This Quote
Source Interview: Bloomberg TV, 2018
Spin‑offs can create notable stock price inefficiencies, offering opportunities for investors to exploit mispricings.
In simple terms: Spin‑offs may cause stock price gaps.
Watch for pricing gaps after spin‑offs.
Themes
Mood
Type
When to use this quote
- portfolio management
- trading
- financial analysis
Key Concepts
Questions to Reflect On
- How do you assess spin‑off risks?
- Do you have a strategy for exploiting mispricings?
Inefficiencies may be short‑lived or risk‑adjusted.