Top 15 Value Opportunities

Whitney Tilson lists the 15 most common types of value opportunities in this article. These are the types of opportunities that Whitney has capitalised on during his investing career: 

  1. Out-of-favour blue chips.
  2. Turnrounds of broken businesses.
  3. Cyclicals at the bottom of the cycle.
  4. Distressed industries.
  5. Overlooked small-caps.
  6. Fallen growth angels.
  7. Growth at a reasonable price.
  8. Piggybacking on activism.
  9. Spin-offs.
  10. Post-bankruptcies.
  11. Let someone else do the investing. Think Berkshire Hathaway etc.
  12. Free/mispriced option. Where an ongoing businesses justifies the current market price and an investor gets a valuable option in the form of a new market opportunity or turnround of a floundering business.
  13. Declining cash cow.
  14. Oddball companies. Companies that have a revolutionary business models that are poorly understood, resulting in cheap stock prices. Classic examples are Southwest Airlines, Dell and Kinder Morgan.
  15. Discount to the sum of the parts. Like Tyco before the recent spin-offs.

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