CBS is the honey badger; they truly do not care. All they do is make money. There’s no flash or pizzazz; they just consistently crush it in boring and bland businesses like TV ratings, retransmission fees, outdoor advertising, and radio. And I continue to remain super bullish on CBS since I bought in last year (up 35% since June 2011).
Again, this is me repeating myself, but I believe in CBS because I believe in their CEO, Les Moonves. He’s such a boss. From a recent Variety article:
When Steve Jobs asked Leslie Moonves for programming to launch Apple TV, the CBS chief said thanks but no thanks. It’s his standard response, he said Thursday, when startups want content and say, “As we grow, you will grow.”
“I don’t do that. I say, ‘Give me half a billion dollars for my content.’ We own the content. They need our content and they know it. It’s what I said to Steve Jobs,” he told investors at the Goldman Sachs Communacopia media conference in Gotham.
Les Moonves basically told Steve Jobs thank you, but suck it. He did the modern day equivalent of Gandalf vs the Balrog:
Steve Jobs/Apple/any tech company that needs quality content: Give us your content for free, or else…
Moonves: YOU SHALL NOT PASS.
That’s true boss behavior. Furthermore, going back to the CBS is the honey badger analogy, Moonves (apparently channeling kindred spirits DJ Khaled and T-Pain) also said “”We are the least sexy network. We get less buzz and less Internet activity. All we do is get more viewers and more money.”
Ironically, CBS does not typically sell to the other company I’m bullish on, Netflix. The two entertainment companies (broadly speaking) operate in different business segments (serialized TV vs. series TV, mass appeal entertainment vs long tail entertainment), which doesn’t make them any less effective. In fact, I would go so far as to say that if you hold shares in both companies, you have the entire media/entertainment spectrum covered. The only other company I would even considering owning would be Disney, on the strength of ESPN and their IP-driven, content-based business model.
Lastly, from Friday, September 21, 2012: CBS Stock Hits New 52-Week High (CBS)