Invest Better Than Bill Gates
Republic Services' largest competitors are Allied Waste (AW), Waste Industries (WWIN) and Waste Management (WMI). Of the four, Allied Waste appears to be the best value, with a price-to-earnings /growth ratio of 1.54 and a price-to-sales ratio of 0.84, compared with 1.85 and 1.95 for Republic Services. Bearing those values in mind, I'd substitute Allied Waste for Republic Services to improve on Gates' portfolio.
Grupo Televisa (TV) is the largest TV broadcaster in Mexico. In fact, it's the largest media company in the Spanish-speaking world. As of March 31, Grupo Televisa represented 15.8% of Cascade's portfolio. That $579 million investment, or 19.5 million shares, also represents 4% of Grupo Televisa.
I believe that, given the enormous Hispanic population in the West, Televisa makes an attractive investment for Cascade. This is an example of Peter Lynch's "one up on Wall Street" investment philosophy of looking for trends in your neighborhood. Televisa not only is gigantic in and of itself, but it also had an investment in Univision, which was sold in 2006.
But Televisa is having problems. That sale was dilutive to earnings -- not a good thing. Some affiliates suffered losses. Televisa reported weaker earnings in the first quarter of 2007. Sometimes portfolio positions stay around too long. I'd pass on this one.Fisher Communications (FSCI) -- representing 0.6% of Cascade Investments' portfolio (455,000 shares worth $22 million), or 5.2% of Fisher -- is an even more local media play than Televisa. Fisher owns TV stations in Washington, Oregon, Idaho and Montana, including KOMO-TV in Gates' home city of Seattle.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV