Category: Money Tips Date: 2006-05-25
This is the classic examples of Buffett's most successful and permanent holders of stocks they are familiar with the media has become the core of Berkshire's investment portfolio of assets. Fisher Buffett has admonished: "Do you hold the hands of a certain stock than in cash is good, otherwise it is not a good investment." Accordingly, Buffett started off on the choice of media as a breakthrough, because the Vampire Slayer Special's grandfather owned the one called "Keming County Democratic Party newspaper," the newspaper, but Buffett also is a "Lincoln Journal", director of operations, if not in business, Buffett is the most likely to engage in journalism.
Because of the media industry twist cooked, so Buffett's investment in media, especially newspapers are well thought out. In the United States there are about 1,700 newspapers, of which nearly 1600 were not direct competitors. Buffett in Berkshire's annual report to shareholders, wrote: "A good newspaper's economic strength is unmatched, and it is the world's most powerful economic force in one." Buffett explained: "Even if a third-rate newspapers, if it is the town's only newspaper, but also earn enough profits. "It is undeniable, a high-quality newspapers have a greater market penetration. So Buffett's investment in the media is from the Washington Post Company to start, and then through the acquisition of the expansion of radio and television media. The same time, Buffett was also good at using their own media companies invest in mutual penetration. For example: The Washington Post Company purchased cable television from the capital group, leaving the capital of the Group have the financial resources acquired ABC television network. Buffett's investment in the media saw in that the influence of the media, and he invested the media company, has through its own influence in the boardroom, and constantly promote mergers and acquisitions to expand the company's distribution network as a way to strengthen the company has a concession dominance. So Buffett's long-term investment not only media companies are making a lot of money, but also started the Washington Post Company and the Capital Group, he is a permanent hold, no matter how high the price-earnings ratio, he is not for sale.
Industrial policy in the stock market is influenced by cultural restrictions, a real sense of the media company is yet to come. Typically, three media-related stocks, namely Pearl of the Orient, Gehua, Dianguangchuanmei. One Pearl of the Orient, and Gehua performance with international standards and, if long-term investors, the stock right through the re-estimation almost no hold-up investors, but the problem lies in the Dianguangchuanmei is the majority shareholder who Hunan Radio and Television. The coming three media companies are likely to be launched similar to the company's acquisition strategy for the foreign media.
So the core of the current media assets can be acquired Where is? Wall Street Dublin, President of the Fund to tell me that the most valuable assets are 2 networks, cable networks and chain bookstore network. Because the publishing industry and the media industry is not open, the content industry is too early to talk about, but all of the media content is through Internet sales, and landing. Buffett's acquisition strategy is to network the media king, only the control of the distribution and sales network in order to strengthen the company's franchise leader. Therefore, a true media company mergers and acquisitions within the subject matter is not installed some new media concepts, but the acquisition of sales networks, electronic media distribution network is a cable TV network, while the horizontal network is the sale of publications, Xinhua distribution networks. (Jiang Ren)
