With the recent pull back in the stock market I thought it would be a good time to add a couple of new stocks to my portfolio 🙂 So earlier today I bought 13 shares of Time Warner Inc, (TWX) at $75.69/share, as well as 26 shares of Twenty-First Century Fox (FOXA) at $34.06/share. Both are U.S. companies so I purchased them inside my RRSP using Canadian currency.
The part I enjoy most about investing is learning how businesses work. By looking through the financial statements and analyst’s reports on large media conglomerates I’ve learned how television programs get funded, how much actors and writers are paid, how advertising works, and many other interesting titbits.
Why Invest in Time Warner Inc
I wanted to invest more money into media and entertainment because this is a relatively stable sector with predictable earnings growth. After some thorough research I have decided to go with Time Warner Inc. Check out the impressive earnings per share (EPS) growth on this bad boy.
Those are some pretty good numbers eh 🙂 Time Warner is most well known by consumers to be the parent company of Warner Bros. Entertainment. But to investors Time Warner represents a collection of highly valued multimedia businesses and brands, not the least of which is HBO 😀
…Which includes HBO on Demand, HBO Entertainment, Cinemax, HBO International (Asia, Europe, Latin America,) etc. About 30% of all households in the U.S. with television service receive an HBO channel. HBO broadcasts in over 150 countries, covering about 114 million subscribers worldwide, wow 😯
Time Warner also owns Turner Broadcasting System which includes Turner Sports, NASCAR Races, websites like NCAA.com, NBA.com, and other television channels like Cartoon Network, and Adult Swim. It also owns the CNN News Group, which includes CNN.com, CNN Money, and a bunch of other media outlets.
TWX’s total market capitalization is $64 billion, which is about twice as big as BCE (Bell Canada.) Below are some brands, tv shows, and logos that you may already know about, but perhaps didn’t know they belong to Time Warner, or was premiered through one of Time Warner’s distribution channels.