David Winters Comments on Wynn Resorts
Casino revenue in Macau has proven resilient and has grown to over $45 billion per year, nine times as large as Las Vegas. With visitation and revenue growing, Wynn Macau has embarked on an expansion plan which will approximately double the size of its operations in Macau. Given the company's valuation, we believe we are paying a fair price for the company's current Macau operations and getting the future expansion for free. With Steve Wynn's established record as a first rate casino operator and shareholder-oriented CEO, we look forward to being his partner in business for a bright future.
The Chinese government has limited the number of gaming licenses in Macau to six, creating the ultimate barrier to entry for competition. With three billion people living within a five-hour flight of Macau and competition limited, we believe that Wynn Macau has the potential to richly reward shareholders in the coming years. Wynn Macau carries net cash on its balance sheet and a compelling valuation, creating what we believe is a prime example of the low-risk, high-reward investment that we continually seek for the Fund. By investing globally in places such as Macau, we believe we are increasing the probabilities of long-term returns for Wintergreen shareholders.
From David Winters (Trades, Portfolio)' Wintergreen Fund (Trades, Portfolio) 2013 message to shareholders.