Topic: How To Invest

What is Pat’s commentary for the week of November 8, 2022

Article Excerpt

As we’ve often said, we think spinoffs are about as close as you can get to a sure thing in investing. Statistics show that after a company sets up one (or more) of its businesses as a separate publicly traded entity and “spins it off,” the shares of both the parent and the spinoff generally do better than comparable companies for a number of years, if not decades. We were so impressed by the proven long-term benefit of spinoff investing that we launched an investment advisory around it—our Spinoffs & Takeovers newsletter. Of course, this “spinoff effect” can take months or years to show itself. In the case of AbbVie Inc., however, the enhanced performance began almost immediately. This pharmaceutical giant began trading independently from Abbott Labs on the first business day of 2013. It started changing hands at $35—and is now at $151. (We first recommended AbbVie in the August 2020 issue of our Power Growth Investor newsletter at $97.70—it’s now…