Warren Buffett Loves Charter Communications and You Should Too

The cable companies may be as hated as they come, but their stocks are a different story. Warren Buffett recently took a large position in Charter Communications, the fourth-largest cable operator in the United States, ten months after the company launched a failed bid to take over Time Warner Cable, which instead opted to merge with Comcast. Even though Charter lost the battle, it is likely to emerge victorious, as Comcast is selling Charter roughly 1.5 million of its Time Warner subscribers as part of an agreement with anti-trust regulators. The subscriber swap nearly doubles Charter’s number of video customers, solidifies its footprint and, once complete, makes Charter the #2 cable company in America. That is a game changer, and will bring Charter out of the shadows and into the limelight as a top-tier competitor to the combined Comcast/Time Warner entity. I'm with Buffett on this one, and I think Charter Communications is worth considering for your portfolio.