Buffett, famous for buying stock in companies when the overall market has beaten them down, increased his stake in Rupert Murdoch's Fox during the first quarter while selling shares of Charter Communications (CHTR) and Viacom (VIAB).
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Buying Fox shares is a bet that Murdoch can turn around a company that has struggled for more than a year as the Fox network has suffered a steep ratings decline coupled with a precipitous decline in advertising revenue. But Buffett knows that many stocks are capable of a rebound, and Fox has long been one of the world's best performing media stocks over the past five years. Shares have gained 174% over the past five years. Of course, Fox has taken a bit of a beating in 2015, losing 12%.
Fox is a media company with deep pockets that has promised to invest in new programming to address its flagship network's struggles. Fox is also a company with extensive holdings in Europe, an underperforming market if there ever was one. It's also made huge investments in India, an emerging market that carries few of the state-sanctioned limitations to foreign companies found in China or Russia, and may have better immediate growth prospects than Brazil.