{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"74 - Merger Arbitrage: High returns from high certainty bets","description":"Mental Models discussed in this podcast:  Arbitrage Efficient Market Hypothesis Brand Power Luxury Power  Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.&amp;nbsp; Follow me on Twitter and YouTube Twitter Handle:&amp;nbsp;@TreyHenninger YouTube Channel:&amp;nbsp;DIY Investing Support the Podcast on Patreon This is a podcast supported by listeners like you. If you\u2019d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at&amp;nbsp;DIYInvesting.org\/Patron. You can find out more information by listening to&amp;nbsp;episode 11&amp;nbsp;of this podcast. Show Outline The full show notes for this episode are available at&amp;nbsp;https:\/\/www.diyinvesting.org\/Episode74 Merger Arbitrage - Examples and Discussion  What is Merger Arbitrage? On November 24th, 2019, Louis Vuitton announced the acquisition of Tiffany for $135 per share. As of today's record, on April 18th, 2020, Tiffany was trading at $129.15. (4.5% gain to reach a takeover price of $135 per share) As of March 18th, 2020, Tiffany stock reached a low of below $112 per share. (represents a 20.5% gain to reach $135 takeover price) Very low-risk takeover. On the day of the announcement, shares rose to over $134 per share.&amp;nbsp;  Summary:&amp;nbsp; Merger Arbitrage is an investing strategy designed to capture the value in price differences between a soon to be acquired company and the acquisition price. Investors can sometimes earn high returns at low risk using this strategy. References  SpecialSituationInvestments.com  @InvestSpecial on Twitter    https:\/\/www.foxbusiness.com\/markets\/tiffany-stockholders-approve-merger-with-lvmh  ","author_name":"The DIY Investing Podcast","author_url":"https:\/\/www.diyinvesting.org","html":"<iframe title=\"Libsyn Player\" style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/14150228\/height\/90\/theme\/custom\/thumbnail\/yes\/direction\/forward\/render-playlist\/no\/custom-color\/1b07f0\/\" height=\"90\" width=\"600\" scrolling=\"no\"  allowfullscreen webkitallowfullscreen mozallowfullscreen oallowfullscreen msallowfullscreen><\/iframe>","thumbnail_url":"https:\/\/assets.libsyn.com\/secure\/content\/71092628"}