Category: Money tips Release Date: 2006-08-16
Graham Buffett warned: "In the short term the market is a voting machine, but in the long run is a weighing device." So Buffett's investment in good endurance: As long as corporate return on equity is full of hope and satisfactory, or a manager capable of performing their duties, and honest, while market prices are not overstated in this business, then he is quite satisfied with the long-term holders of any securities. If the stock market is indeed over-estimated the individual business, he would sell his shares. In addition, if he needs the cash to buy other companies likely to be underestimated, or have the same value, but he better understanding of the business of the shares, Buffett will be the sales value is fair or undervalued securities to cash.
However, four companies of the common stock as a permanent holding of Buffett's been out, that no matter how the stock market had overestimated their stock prices, Buffett will not be sold. They are the Washington Post Co., GEICO, the capital / ABC Inc. and Coca-Cola Company. In which two are the media stocks, GEICO is an insurance company, they are in the last century was 70 years Buffett's holding, but investors are familiar with Coca-Cola Company is the 90's was only classified as a permanent holding Buffett shares, can be seen on the media shares Buffett's favor.
The Washington Post Company owns newspapers, magazines, radio and television and cable networks, and early in 1931 with only a daily record Shique "Washington Post." The capital / ABC is a media and communications company, owns and operates television and radio networks, television and radio stations, also has a number of print media, early in 1954 when the record is from the Albany City TV and AM radio stations started in . Buffett bullish these two media share a very simple reason that the concession companies that have nothing to fear. Which have nothing to fear of the concession is that the two media companies to get through numerous mergers and acquisitions, but behind these mergers and acquisitions are also often accompanied by multiple companies repurchase their own stock. Wall Street In addition to AOL Time Warner merger was a failure of the case, most media companies effect of the acquisition strategy is still good.
Culture media industry in China is still subject to strict protection, trade, WTO terms of accession to the WTO clearly not the publishing industry and the media industries open to foreign investment. But last week, referred to "the State Council on non-public capital into cultural industries in a number of decisions" but hinted that the cultural media companies to possible future mergers and acquisitions in the capital market started Raiders, and if a backdoor listing will also bring new themes the secondary market overweight the stock concept, because it provided for a number of decisions to be holding 51% of state-owned enterprises. But also before the split share structure reform, there may be some media stocks did not sincerely want to do a good job the majority shareholder of listed companies, the most typical of such Dianguangzhuanmei, got to the final with 51% controlling interest gone. The full circulation market after the acquisition is expected to increase, so the G wide electricity price rise occurred, it really is worth the head of Hunan Radio and Television reflection.
Also I am more optimistic about the next two years to bring culture and media company mergers and acquisitions backdoor listing of subject matter, because the issuance of new shares to make way split share structure reform, but the 2008 Olympic Games and 2010 World Expo letting a lot of culture, media companies can not wait for the lengthy pre-market wait, so he is a backdoor listing a shortcut, while the culture and the media industry state-owned assets to be owned 51% of the concepts, turn to the cultural media mergers and acquisitions unit to bring different kind of subject matter.
