Liked the D.E. Shaw valuation arbitrage where they invest in a bankrupt company with valuable assets.
We also have a good semi-desi example in Lakshmi Mittal. This guy goes one step further - he buys undervalued assets and value-adds to them. If this can be done by leveraging your existing assets without too much of fresh capital infusion then it'd be the finest business model.
Microsoft is currently trying the same thing with *****, but they should have done this during the internet-bubble-burst period when they could have got it cheaper with 'valuable (& complimentary) assets'. Post Google, things have bounced back to the other extreme of the 'rubber band' and the mean has also risen considerably.
Regards,
Kalyan.
Last edited: