My 14 months daughter eats hair. That's true. She crawls everywhere in the house and when she finds some hair (my girlfriend has long dark hair), she takes it and then she puts it in her mouth.
My girlfriend told me that my daughter also eats grass and that she once tried to eat a spiderweb.
These fucking babies are so crazy and stupid!
Us, investors, are much more rationnal and wise. That's why we eat transformed food flavored with cancer and we invest in Valeant.
For some people, the ultimate level of intelligence and wisdom is John Malone. Let's precise that these people are investors because if you go on the street and ask who John Malone is, I bet you a handful of dark hair that nobody will answer correctly.
Personnaly, I don't know the guy. That's why I made a little research about him and his creature, Liberty Media, which is a stock I wrote about recently (it's a new position of Sequoia and Giverny Capital).
Who is John Malone?
Age: 76 (born in 1941)
Personnal wealth: 7,8 billion US$
Nickname: Cable cowboy
Chairman of the board of Liberty Media
What is Liberty Media?
Liberty Media owns interests in a broad range of media, communication and entertainment businesses. Below is a list of most known entities that are part of Liberty Media and the ownership percentage of Liberty Media in these positions.
Atlanta Braves: 100%
Formula One: 100%
Sirius XM: 68%
Live Nation Entertainment: 34%
These 4 businesses are great. A sport team, a huge car's race festival, a satellite radio company and the largest live entertainment company in the world (many famous bands and artists are associated with Live Nation, such as Shakira, Katy Perry, Roger Waters, Bruno Mars, etc).
Entertainment is, in my opinion, a great sector to invest, as long as it could resist to technology evolution. Which is the case here, at least for the next few years.
Some sources on Internet are relating that John Malone has achieved to compound capital at an annual rate of 30% for about 25 years. I'll say they're right because agreeing with any Internet source is the easiest way to live your life.
Malone has the reputation of being a low cost operator focusing on long-term after-tax cash flow instead of short-term accounting profits. If you take a look at FWONK numbers, you'll see it's not that easy to understand. Personnally, I think that the accounting is a little bit complex. Malone likes depreciation and spin-offs a lot. That's what he uses to create value. That's super great to read, but harder to analyze.
Three years ago, many people said that Michael Pearson was an unbelievable manager with lots of skills for value creation... although Valeant accounting practices were complex. I'm not saying here that Malone is similar to Pearson. But I like to see clearly into numbers, which isn't the case with Liberty Media.
Nonetheless, I believe that this stock is a conglomerate of great businesses and that we should look deeper into it.