Should i buy bskyb shares




















Foolish Summary With under-control borrowings, decent dividend cover, a record of steady growth and an optimistic outlook, there are many positives. However, the valuation does look a little full so I'm keeping the shares on watch for the time being. But a growth story uncovered by one of the Fool's top investment writers tempts me. He has put his money where his mouth is by investing and believes the share to be the "Motley Fool's Top Growth Share for ".

You can discover how the company has reenvisioned itself to allow for tremendous growth along new horizons. Right now, the report is free and tells you exactly why our expert has invested in, and expects strong growth from, this changing company with a strong pedigree.

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Average returns of all recommendations since inception. Cost basis and return based on previous market day close. And no, that's not a typo. The thing about buying profitable, time-tested businesses with sustainable competitive advantages is that they often pay a dividend.

In Berkshire Hathaway's case, approximately two-thirds of its 52 held securities in its portfolio currently pay a dividend. What's particularly interesting is that Buffett's yield on cost -- i. In fact, Buffett has held Coca-Cola for such a long period of time that he doubles his money on it every two years , based solely on its payout relative to Berkshire's initial cost basis.

In addition to making great investments, Buffett also understands the importance of having dry powder at the ready for when unique situations present themselves. There's little doubt that Buffett and his team have put some of this capital to work over the past two months. Furthermore, this cash serves as the jumping off point for game-changing acquisitions.

I'm going to touch on the importance of acquisitions in an upcoming point. Then again, this is a purposeful move on Buffett's part, as his goal is for Berkshire's cash to be put to work in generating additional capital. But even though shareholders aren't receiving a dividend, they aren't forgotten. One of the absolute favorite stocks for Warren Buffett to buy is his own. Fewer shares outstanding often has a positive impact on earnings per share, which can ultimately make a stock more attractive on a valuation basis.

A sixth great reason to buy Berkshire Hathaway stock and never sell is that a bet on Buffett really amounts to a long-term bet on the growth of the U. That's because Buffett's portfolio is unmistakably cyclical in nature.

In other words, it does well when the U. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. All rights reserved. Happening Now.

Harvey Jones, The Motley Fool. More From AOL. This content is not available due to your privacy preferences. Update your settings here to see it. It's not got the bells and whistles of the Sky package, but it's a decent saving in these tough times. Companies such as BT will also soon be able to offer live TV channels known as linear TV over its broadband network, increasing customer choice.

So Sky is going to have to work harder to hang on to customers. And this is showing in the latest results. Sky has It is also freezing prices. Of course the company isn't resting on its laurels. It will launch an internet TV service later this year, which looks like a good defensive move. And it is also taking the fight to rivals such as BT. One area where Sky is really growing strongly, is in broadband and phone services. Nearly one third of its customers now take TV, phone and broadband services.

This is a great way of keeping customers and earning more money from them, and it means that Sky still has nearly 7 million of its own customers to switch over. This should worry other broadband providers Talk Talk springs to mind here and will put pressure on BT to improve its TV offer.

So Sky is still a good business. And on the face of things, the shares look reasonable value. They trade on The business is also generating lots of surplus cash flow and is paying down debt quickly.

But I wouldn't buy the shares.



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