Most of the attention directed toward Time-Warner as an investment opportunity is based on the company's abysmal record over the past decade, i.e., that the stock has so underperformed the market, it's bound to move up smartly if it becomes an "average" company. People have been saying such for a long, long time.
Most analysts readily acknowledge that as a media company TM is not really in the same league as Disney, Disney has an such an overwhelming brand and a quality image in the American mind and, indeed, the world's mind. TM's big cable assets should continue to be an albatross, dragging down financial performance for years to come as ingenious ways are found around cable to provide internet and video service.
Disney is, and shall continue to be hugely successful LT, my investment perspective. Sure, TM could outperform over some period but if I wanted more risk in my portfolio I'd invest with greater reward in high tech. Disney is safer because of its unique qualities.
BTW, does Time-Warner still have negative net worth? In any event, I would not invest in any company which has a bipolar head case as Vice-Chairman and who, since he allegedly stopped taking his medication, has been given to publicly wishing "death" to his better performing rivals. He also talks like a moron (and it's not the southern accent). (IMO)
Regards |
