Lessons from Investment Gurus

The Most Important Thing

 Successful investing requires thoughtful attention to many separate aspects, all at the same time. 
Omit any one and the result is likely to be less than satisfactory.

The idea of the most important things—each is a brick in a solid wall, and none is dispensable. 

[2024 Group Prediction] Does Warner Bros. Discovery make a big comeback this year?  Shares just dropped 12% in Q4 as the company reported a net loss of $400M, but they ended 2023 with $6.16B in free cash flow, an 86% rise from the year before, after generating $3.31B in free cash flow.  Remember, they own Max (HBO), CNN, and more….

Nate

And let’s not forget that the Oracle rally that enriched Larry Ellison is itself based on rickety foundations.

Oracle’s revenue forecasts are predicated on AI cloud deals signed with OpenAI and others going out several years. OpenAI has to raise money to fund the contracts. If the AI boom falters, then OpenAI might have to pull back. As it is, some investor enthusiasm for Oracle dissipated on Thursday, as the stock fell 6%.

There’s no question a combination of WBD and Paramount holds promise (and given Ellison’s ties to President Donald Trump, it has a good chance of getting regulatory approval). It would catapult David Ellison into one of the leading positions in Hollywood and make him a force in streaming. Disney CEO Bob Iger would suddenly face competition as captain of Hollywood. But the potential for this turning into a disaster movie is real.

And let’s not forget that the Oracle rally that enriched Larry Ellison is itself based on rickety foundations.  Oracle’s revenue forecasts are predicated on AI cloud deals signed with OpenAI and others going out several years. OpenAI has to raise money to fund the contracts. If the AI boom falters, then OpenAI might have to pull back. As it is, some investor enthusiasm for Oracle dissipated on Thursday, as the stock fell 6%.  There’s no question a combination of WBD and Paramount holds promise (and given Ellison’s ties to President Donald Trump, it has a good chance of getting regulatory approval). It would catapult David Ellison into one of the leading positions in Hollywood and make him a force in streaming. Disney CEO Bob Iger would suddenly face competition as captain of Hollywood. But the potential for this turning into a disaster movie is real.