"A Simple Anomaly That's Been Crushing The Market For Decades"

Erik Falkenstein:

The straightforward strategy of buying companies that have recently been spun off from their parent has generated very good results. 

Comments

[JorgXMcKie]

As for as spinoffs are concerned, surely any reasonable survey of organization theory could supply some basis for what happens.

Most [perhaps all] large organizations have probably fallen prey to Pournelle's Law and are inefficient for that reason, if nothing else.

Spinning off a part/division gets rid of the Pournelle problem as least temporarily, thus allowing for more efficiency and quite probably more effectiveness.