Malone’s Liberty Media (NASDAQ:LMCA) Outshines Buffet’s Berkshire Hathaway
$LMCA, $BRK.A, $BRK.B
Warren Buffett, 85 anni, has promoted his reputation for being the most astute investor in the world. But, Cable-TV magnate John Malone’s, 75 anni, Liberty Media has better job for shareholders, according to the data.
“Over the past decade, Malone’s investment returns have bested those of Warren Buffett’s Berkshire Hathawa,” according to the Barron’s. “A holder of the original Liberty Media in 2004, before it split its U.S. and international assets into separate companies, would have realized annualized returns of 13 percent, compared with 7.5% for Berkshire and 7.7% for the Standard & Poor’s 500 index.”
Mr. Malone’s holdings, which now consist of 9 tracking stocks bearing the Liberty name, have additional room for growth in the areas of home shopping, European cable TV, satellite radio, online travel, broadband internet and sports programming, the magazine reports.
John Malone is a master dealmaker with a knack for tax-efficient transactions, that is not Warren Buffett.
“The Malone magic formula starts with good businesses that are within his core competency, then putting the right management teams in place and leveraging those companies appropriately,” Christopher Marangi, co-chief investment officer of the value group at Gamco, told Barron’s. “One of our golden rules for investing in media and cable is to be on the same side of the table as John Malone and to align our interests with his.”
Mr. Malone has a personal stake valued at $4-B in his Liberty empire, which has a total market capitalization of about $80-B. He essentially controls companies such as Liberty Braves, owner of the Atlanta Braves baseball team, Liberty Broadband, Liberty SiriusXM and Liberty Interactive/QVC with super-voting shares and now Formula One racing.
Warrent Buffett is one of the world’s richest men with an estimated net worth of $64.8-B, has seen his wealth dwindle as scandal-rocked Wells Fargo & Co. (NYSE:WFC) lost value in the past month.
Berkshire Hathaway owned about 10% of Wells Fargo as of 1 July and sought SEC and bank regulator permission to buy more shares.
Buffett told Wells Fargo Chief Executive Officer John Stumpf that the bank was too slow to recognize the seriousness of the problem after settling investigations into the phony account allegations, according to media reports.
The risk to the bank and its brand. according to Mr. Buffett, is bigger than fines of $185-M
And yes, Wells’ problem is deeper than the government fines for the crimes against its customers and staff.
|NASDAQ:LMCA||28.75||3 October 2016||0.10||29.03||29.15||28.67||153,471|
|HeffX-LTN Analysis for LMCA:||Overall||Short||Intermediate||Long|
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