Billionaire Nelson Peltz’s Top 5 Stock Picks

3. Comcast Corporation (CMCSA) 

Established and developed through different years of mergers and acquisitions, Comcast Corporation is now considered to be a telecommunications conglomerate. Being a multinational media and technology company, Comcast focuses on two main businesses namely, the Comcast Cable and NBCUniversal.

To give a more brief description of CMCSA’s two main businesses, here is a quote from Comcast Corp’s newsletter:

“Comcast Cable is one of the United States’ largest video, high-speed Internet, and phone providers to residential customers under the XFINITY brand, and also provides these services to businesses. It provides security and automation services to residential customers. Comcast also offers a wireless cell phone service under the brand Xfinity Mobile. The company has 29 million customer relationships in the United States (39 states and Washington, D.C.).

NBCUniversal is one of the world’s leading media and entertainment companies. NBCUniversal owns and operates a valuable portfolio of news and entertainment broadcast and cable television networks and brands (including NBC, Telemundo, NBC News, CNBC, MSNBC, NBC Sports, USA Network, E!, Bravo, and Syfy), premier motion picture companies (Universal Pictures, Focus Features, Illumination Entertainment, DreamWorks Animation), significant television production operations (Universal Cable Productions, Telemundo Studios, Universal Television), two leading television stations groups, renowned theme parks (in the U.S, Japan, Singapore and a park in development in China), and a suite of Internet-based businesses. “

Comcast Corp is part of the Top 3 holdings of Nelson Peltz’ Trian Fund Management with an 11.94% slice, this makes Comcast the 3rd highest in terms of Peltz’ total portfolio allocation. Peltz has invested $722,958,000 for 15,628,146 shares of Comcast Corp. Here is what Longleaf Partners said about the stock recently:

“Comcast (18%, 0.83%), the cable and entertainment company, added to the strong absolute results in the quarter. Cable delivered one of its best quarters of net subscriber additions ever and grew EBITDA 5.5%, while losses from closed small business customers have moderated during reopening from the COVID lockdown. Sky, the European TV and broadband business acquired in 2018, retained subscribers at a high rate despite the extended absence of live sports. CEO Brian Roberts stated that Sky remains on pace to double its EBITDA over the next several years. Comcast’s new Peacock streaming service and Universal theme parks are ramping up revenues gradually, presenting more opportunities for Comcast to improve earnings significantly over the next several years. Despite the double-digit returns in the quarter, the company remains discounted. We were encouraged by Roberts’s statement in the quarter that he was committed to repurchasing shares again in the near future.”