Start digging in special corporate situation.
1 . Spinoffs
A spinoff is when a company takes a subdivision and separate it from the parent company, making it an independent entity.
Spinoffs beat the S&P 500 by 10% per year during the first three year as standalone companies.
The parent company managed to beat the market average by about 6% per year.
On average, with a basket of spinoffs, one would have achieved return of about 20%, without any talent or comprehensive research.
Imaging picking your spots within this area and increasing those return even further.
A spun off can be too small for institutions to own and they’re often not the reason that they bought the stock in the first place.
2. Merger Securities
3. Risk Arbitrage
5. How to act in all special situation
Invest with the operators.
Pick your spots and concentrade