WWII 033: John Malone the Master Financial Engineer, the Liberty Complex, Gold as a Safe Haven, Robots Taking Our Jobs

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In this episode of the podcast, I shine the light on the Master Financial Engineer John Malone of the Liberty complex. This guy has provided amazing returns for shareholders over the years and if you are looking for a manager to study to figure out what makes shareholder friendly management, this is the guy you should start with.

Main Topic: John Malone the Master Financial Engineer

John C. Malone (born March 7, 1941) in Milford Connecticut, US. B.A. from Yale, M.S. from New York University, and Johns Hopkins University M.S. Ph.D

Net worth of $6.5B.

He served as chief executive officer (CEO) of Tele-Communications Inc. (TCI), a cable and media giant, for twenty-four years from 1973 to 1996. Malone is now chairman of Liberty Media, Liberty Global, and Liberty Interactive all which he is the majority owner, and also owns 49% of Starz Inc. and 29% of Discovery Communications.[2][3][4]

Malone serves on the Boards of Directors for the Bank of New York Mellon, the Cato Institute, and Expedia.com. Additionally, Malone is Chairman Emeritus of the Board for Cable Television Laboratories, Inc. and Chairman of Liberty Global, Inc., and the DirecTV Group.[12]

His rise to Chairman at Liberty Global, Inc., was contentious at times. In 2005, John Malone held 32 percent of the shares in the media company News Corporation, and although only about half of these shares were voting shares, Rupert Murdoch reportedly had concerns that he might lose the control of his company to Malone, and tried to oust him from the firm with a "poison pill" strategy

He owns Silver Spur Ranches, a ranching and beef company which includes the Silver Spur Ranch in Encampment, Wyoming, Bell Ranch and the TO Ranch in New Mexico as well as ranches in Walden, Colorado and Kiowa, Colorado. As of 1 February 2011, he has surpassed Ted Turner as the largest individual private landowner in the US, owning 2,100,000 acres (8,500 km2) of land, most of which is in Maine. His international real estate holdings include Humewood Castle in Ireland.

Liberty Media – Owns a majority of voting shares. Liberty Media has the following assets in its portfolio

· Liberty Sirius XM Group – Sirius XM Group – 65%

· Liberty Braves Group – Atlanta Braves – 100%

· Liberty Media Group

o Formula 1-OWNERSHIP 19%

o Ideiasnet - A Brazil based company that develops projects and acquires stakes in companies in technology, media and telecommunications. OWNERSHIP 27%

o INRIX a provider of traffic data and analytics to auto OEMS

o KSE 7% - owner of Pepsi Cneter in Denver Colorado

o Liberty Associated Partners, L.P. - Principal investment firm specializing in private equity investments. OWNERSHIP 29%

o Liberty Israel Venture Fund - investment fund focused on Israeli technology companies. OWNERSHIP 80%

o Largest live entertainment company in the world, consisting of four segments: concert promotion and venue operations, sponsorship and advertising, ticketing and artist management.OWNERSHIP 34%

o Saavn - Indian music streaming service focused on Bollywood music.OWNERSHIP 7%

, Liberty Global

Liberty Global is the world’s largest international TV and broadband company, with operations in more than 30 countries across Europe, Latin America and the Caribbean. Liberty Global’s businesses are comprised of two stocks: the Liberty Global Group (3 ticker symbols), and the LiLAC Group (3 ticker symbols).

Liberty Interactive

QVC – Ownership 100%

Zulily – Ownership 100%

HSN – Ownership 38%

Evite – 100%

FTD florists – 37%

Lending Tree – 24%

Liberty Broadband – 24% - Charter Communications, TruePositio, Inc.

, and also owns 49% of Starz Inc. and 29% of Discovery Communications

The cable industry created so many rich guys. It was the combination of tax-sheltered cash-flow growth that was, in effect, growing faster than the interest rate under which you could borrow money.

Predictable income streams are much more valuable than volatile ones because you can leverage them.

Our skills here...are very much in financial engineering

John Malone
Liberty Media

Ask JB: Trade or Invest? Is Gold a Safe Haven?

Advice on trading with a small account (self.investing_discussion)

submitted 2 months ago by upsndwns

I've been trading with Robinhood for about a year with a small account (free trades). Lost most of it as I learned many lessons the hard way, but have learned to take profits and control losses and I think I'm ready to graduate.

I have a small IRA $2,200 that I want to trade with. One of the biggest lessons I've learned is to diversify, but now that I'll be paying 3.49/trade ($7 total entry plus exit) it's going to be much harder to make profits on small trades. A $200 investment needs to make 3.5% just to pay the fees.

Any advise on growing this account without risking too much on any one stock? I'm not interested in many long term investments, I'm excited about technical trading and finding breakouts.

JB Says: 99% of traders lose money and you are not going be the 1% who makes money. Even more, commissions will eat up your tiny capital before to long, and you don’t have enough capital to ride out losing streaks, which you will have. You have two choices. One hand, lose it all with a 99% certainty, or, on the other hand, pick two mid or large cap stocks in businesses that are selling at 10-12x earnings with very diversified products and customers (and you will be diversified through ownership). Then spend your time figuring out how to earn more so your IRA and net worth in general can grow.

Gold safe haven? (self.investing_discussion)

submitted 2 months ago by vladtitov151

I get this story everyday about Gold being a safe haven. And when I ask why, the answer remains because its a safe haven. Please, if you can help me clarify this. Thank you.

First of all, be careful where you get your information from about gold. Here is what Warren Buffett says about gold.

1. "Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

2. "Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn't produce anything."

3. "I will say this about gold. If you took all the gold in the world, it would roughly make a cube 67 feet on a side…Now for that same cube of gold, it would be worth at today's market prices about $7 trillion – that's probably about a third of the value of all the stocks in the United States…For $7 trillion…you could have all the farmland in the United States, you could have about seven Exxon Mobils (NYSE:XOM) and you could have a trillion dollars of walking-around money…And if you offered me the choice of looking at some 67 foot cube of gold and looking at it all day, and you know me touching it and fondling it occasionally…Call me crazy, but I'll take the farmland and the Exxon Mobils."

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News: Robots Won't Be Stealing Our Jobs Just Yet

JB Says: Robots will take on tasks that humans cannot do, such as lifting heavy objects, and repetitive motions that humans don't want to do. Humans are tremendously complex so replacing humans with robots for solving complex problems and complex dialogues won't happen for a very very long time. Taxi drivers may be out of luck in the next twenty years, but there is plenty of time for them to learn other skills.

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Thoughts on this podcast? Disagree with me on some point? Something I missed? Leave a comment!

About the Author

Jeremy Scott Bailey is an investor, author, entrepreneur and host of the "What Works In Investing?" podcast now available on iTunes. He is founder and Chief Investment Officer of Burgeón Group, Inc. an investment advisory firm that provides portfolio management services to families and individuals.

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