🚨ANNOUNCEMENT🚨 First Stock In The New Portfolio (Issue #19)
What is Inside?
Newsletter Looking Forward
First Holding Announcement
Trivia
For those of you who missed last week or are new to the newsletter “The Jungle” (Streaming Jungle) is changing. Now, this newsletter is focusing on high-quality long-term growth companies with durable competitive advantages. However, I will still be reporting on Alternative Streaming, just as a part of another newsletter. Now you can find monthly updates on Alternative Streaming on Media Bytes. Although the companies being tracked are changing the same newsletter style of Sunday Updates and bi-weekly Thursday Deep Dives will continue. This newsletter will now go under the moniker (drumroll please)…
Now onto this week’s newsletter:
The Pillars And Profits portfolio is very much “in development” but I didn’t want to overload you with too many new companies. So we will start with just one core company. As I release deep dives I will reveal the 6 other companies in this portfolio. After that I will post deep dives on companies I am considering adding and decide whether or not to invest. While some companies will be added to the portfolio the goal is to find a few of the highest quality long-term growth companies with fortress balance sheets and durable competitive advantages. Now the first company in the portfolio is…
Liberty Media Formula One (NASDAQ: FWONK — $30.18 billion) is one of the few companies carrying over from the Alternative Streaming Index. This company has a fantastic streaming and media strategy as well as a general strong capital allocation and operation ability. Involved in MLB, Drone Racing, SiriusXM, Formula One, and much more this company is seemingly random, but each of these acquisitions has been carefully thought out and well executed. If you want to learn more about the business you can read my deep dive here.
Here’s an update on Q2 performance that was not in the deep dive:
Revenue from SiriusXM grew 4% Year/Year (Y/Y) to $2.25 billion. While this is important Liberty Media achieves most of its notable growth through acquisitions. Further SiriusXM is not a growth holding as much as a cash cow.
Revenue from Formula One Group grew 37% Y/Y to $744 million. This is one of their growth plays. It is also important to note that Operating income went from ($43) million in Q2 2021 to $49 million in Q2 2022. Also, there were the same number of races (7) in both quarters.
ANSWER:
In spite of popular belief, it is the Atlanta Braves, not the New York Jets!
“The Braves have played excellent baseball the past two months and have successfully driven attendance growth compared to 2019 off of an already high base.”
- Greg Maffei, CEO Liberty Media
Revenue from the Braves grew by 20% to $260 million with one less game occurring in Q2 2022 than Q2 2021.
Meme Of The Week:
Insight Of The Week:
Thread Of The Week:
Be ready for the next stock announcement on Thursday,
Soren
Disclaimer: Soren Peterson and Pillars And Profits Newsletter are not responsible for any investment results. This is not financial advice. Always do your own research.