Investment Update Webcast – March 2018

Duration: 51:30

Wayne Peters, Chief Investment Officer and Nathan Bell, Head of Research, provide an update to the Peters MacGregor Global Equity portfolio.

Stocks discussed include: Discovery Communications, Charter Communications, Liberty Broadband, Liberty LiLAC, JD.com, Alibaba and more.

The investment update was held on 21 March 2018.

One thought on “Investment Update Webcast – March 2018

  1. Thanks for the presentation. Are you not concerned about the risk that we could be heading for a broadband internet access price war?

    When internet access unbundles from pay TV, it will become a commoditised service, and customers will likely become much more price sensitive.

    As the industry matures and pay TV revenues shrink, there is a real risk that the cable companies and telcos all start competing with each other aggressively for market share on price.

    Internet access is a high capital/sunk cost, low marginal cost business, much like wireless access, and we have seen price wars play out repeatedly in this space across the globe.

    Malone’s companies are all leveraged to the hilt and rely on buybacks to drive shareholder returns. This has worked well for Malone for multiple decades when the industry has exhibited cash flow stability. However, he is very exposed if a price war for internet access occurs – particularly if interest rates are also rising.

    Have you guys thought much about this risk?

    Cheers,
    LT

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