How Value Investors Profit from Corporate Spin-Offs in 2026

In this episode of The Value Investing Podcast, Lucas and Luna explore why corporate spin-offs can be a goldmine for value investors. They anchor the discussion on the recent spin-off of GE Vernova from General Electric, using it to illustrate the 'spin-off effect'—where newly independent companies often trade at a discount due to forced selling by index funds and institutional mandates. Lucas explains how this creates a temporary mispricing that patient investors can exploit, citing historical examples like the spin-off of PayPal from eBay and the breakup of Abbott Laboratories. They also touch on current market conditions, noting the S&P 500's 4.2% five-day decline as of June 10, 2026, which has made spin-offs even cheaper. Lucas provides a framework for evaluating spin-offs: look for strong underlying businesses with clean balance sheets and insider buying post-separation. The episode wraps with a discussion on how to identify upcoming spin-offs and the importance of patience in realizing value. #ValueInvesting #SpinOffs #Graham #Buffett #GEVernova #GeneralElectric #PayPal #eBay #AbbottLaboratories #Mispricing #ForcedSelling #IndexFunds #InstitutionalOwnership #InsiderBuying #S&P500 #MarketDecline #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo