Good work, I'll reply to your earlier question when I get a minute working full time refitting my yacht at present.
Will also reply to Day Trader, when I stop laughing that is.
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Maybe share what PARA is ,doesn't make sense otherwise
hope its not para - paramount pictures lol ...
Well I found it whilst looking through Berkshire Hathaway's holdings, and also found out from SailorRob it is one of Christopher Bloomstan's holdings. I like Bloomstran's logic in this article, pg 41 onward.
"In my world, I've got revenues growing from today's $28 or $29billion to $33 or $34billion. You're going to get mid-single-digit growth on top line, you'll get price. But I've got profits which are depressed at a 5% net today. I've got the margin doubling back up to where they were prepandemic, so 10 to 12%.You're looking at $3 or$4 billion net income, and as we do the math, and think where everything shakes out in four or five years, we have a market cap today that's 12.5 billion. You capitalize that on $34 billion in revenues at a10 to 12% margin, you can get to a $50 billion market cap, four times where you are today.If we're wrong, and we simply muddle along and margins are permanently depressed at current levels, the stock’s at eight times earnings. Recapitalize it at double the multiple and contemplate the business throwing off alot of free cash."
Except only now PARA is sitting at a $7.8 billion market cap which gives a greater margin of safety than either Bloomstran or Buffett have on their investment. That is a 0.25 price to sales ratio, with a fairly high likelihood of margins returning to healthy levels in say the next five years. If margins are able to return to their historical level, Paramount will be absolutely raking in the cash.
Plus, theres chance of the business being acquired which would likely occur close to book value/assets being sold down and the cash distributed. But my thesis doesn't necessitate this occurring.
Yeah it has been "terrible" over the short term for many. But it has some of the worlds best investors in it, so that alone gives it merit. The mere fact that I purchased an investment at probably close to 1/3rd the price Buffett paid for it just last year makes me feel comfortable with my investment in PARA.
https://www.marketwatch.com/articles...=mw_latestnews
Found this article talking about a fund which has beaten S&P500 index on 5 years basis also !!