Is This The Top For $LILYBTAK… ETC ? Barron’s “John Malone Better Than Buffett?”
Barron’s Buzz: John Malone Better Than Buffett?
Barron’s senior editor Jack Hough and WSJ’s Shelby Holliday preview the new issue of Barron’s. Topics include the investment strategies of Liberty Media chairman John Malone. Plus, have heath care stocks lost their luster? Also, how Donald Trump’s comments impact the Mexican Peso.
AT 75, MALONE REMAINS A GUIDING FORCE at Liberty—and remains famously averse to paying taxes. Liberty is known for shuffling assets through tax-efficient transactions including spinoffs, tracking stocks, and other financial maneuvers. Marangi counts seven Liberty spinoffs over its history as well as a half-dozen times when tracking stocks were issued. Among the spinoffs are Discovery Communications (DISCA) and Starz (STRZA). Lions Gate Entertainment (LGF) and Starz are set to merge later this year.
“No other executive in the U.S. has mastered the intricacies of the tax code to the same extent that Malone has,” says New York tax expert Robert Willens. “We are consistently in awe of the structures he and his advisors come up with to rearrange his extensive holdings, always without tax consequences, in the most advantageous way.”
In an interview with Barron’s last week, Greg Maffei, the CEO of Liberty’s U.S. businesses for more than a decade, said the Liberty mission is simple: “We’re trying to create value for shareholders.”