Liberty Media (FWONK) Playbook (Issue #24)
Liberty Media Playbook, Trivia, Portfolio Performance Update...
What’s Inside?
Liberty Media (FWONK) Playbook
Trivia
Portfolio Performance Update
The Playbook:
Liberty Media Formula One (NASDAQ: FWONK — $29.66 bn)’s management are some of the world's best capital allocators and operators. They have a clearly developed playbook for success that has been used for many years. Let’s break it down:
First, Liberty finds a company that is undervalued. This is either because of recent or short-term mismanagement or financial distress like bankruptcy. The businesses usually have some kind of undervalued assets or advantages. Typically these businesses are in sectors that inherently cash flow well (i.e. anything with a subscription like SiriusXM, F1 TV, etc).
Once the business is purchased then Liberty uses its superior operation skills to rework the business to make it a cash flow. Now that the business is operating more efficiently it’s valued higher. On top of this, Liberty now has a cash-flowing income stream.
Repeat. The new cash can be used to acquire another business. Liberty has successfully done this many times acquiring companies like Formula One, SiriusXM, the Atlanta Braves, and even a Drone Racing League.
If you want to understand Liberty more completely check out the full deep dive on it here.
Portfolio Update:
Here is this week’s performance update. If you want to see the full spreadsheet with links to the deep dives go here.
Trivia:
ANSWER
Insight Of The Week:
Meme Of The Week:
Thread Of The Week:
Until 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.