I bought Time Warner (NYSE:TWX) stock in 2014. At its core, TWX is in one of the most enduring industries around, the storytelling business. The company operates Turner Broadcasting, Home Box Office (HBO), and the film studio, Warner Bros. Turner Broadcasting has a variety of networks including CNN, TBS, TNT, the Cartoon Network, and more. My rationale was that TWX’s operating segments just completed an extremely profitable year and that the company has a media library second only to Disney with such recognizable names such as DC comics (Superman, Batman, etc), Harry Potter, Lord of the Rings, Game Of Thrones, etc.
The stock was fairly valued because of cord cutting worries. A couple of months after my purchase, Rupert Murdoch’s 21st Century Fox made a bid for TWX and the stock shot up over 30%. I could have made a sizable gain in a short amount of time had I sold the stock then. I didn’t sell because I believed in the company’s assets and thought other companies might also make a bid for TWX. In August of 2014, Fox withdrew its bid after TWX’s management refused to engage in talks. The stock quickly fell back down to a level slightly above my purchase price. Continue Reading »