Warren Buffett and the Art of Stock Arbitrage: Proven Strategies for Arbitrage and Other Special Investment Situations

Buffett, once a member of Warren's immediate family, and Clark, a writer with a background in finance and law (Warren Buffett's Management Secrets), tackle Mr. Buffet and stock arbitrage this time out. Warren Buffett is known for his ability to pick undervalued stocks and turn around beaten-down companies. He is less well known for his use of stock arbitrage, and the authors advance the argument that this method, though not particularly flashy, has been an excellent money maker for him. They take the reader through the different types of arbitrage%E2%80%94friendly mergers, hostile takeovers, self-tender offers, liquidations, spin-offs, stubs and reorganizations. In many of these, the stakes seem large and the profit seems small, but they yield a high percentage return. Mr. Buffett is rarely quoted directly in this short volume, but the authors provide numerous examples in how to implement his strategies. Even with his techniques explained however, not all will be enjoy Mr. Buffet's results. (Nov.)