Given the recent decline in cable company stock prices, it is not surprising that smart money is giving a closer look to the sector. According to a Bloomberg report, Billionaire investors Warren Buffett and George Soros have increased their holdings of U.S. cable television companies. The cableco shares declined after a blaze of news coverage for Baby Bells and their fiber plans. But the two of the smartest investors know that it will be a few years before Bells can catch up, and even then Cable companies have a good chance of consolidating their positions not only against fiber, but also against satellite television operators.
Buffett’s Berkshire Hathaway Inc. doubled its stake in Comcast Corp., the world’s largest cable-television operator, to 10 million shares in the fourth quarter, the investment holding company said in a filing yesterday with the U.S. Securities and Exchange Commission. The stake was valued at $328.4 million as of Dec. 31, the filing said. Soros Fund Management LLC purchased 2.6 million shares of Time Warner Inc., operator of the No. 2 U.S. cable business, according to a filing with the SEC. Those shares were valued at $50.5 million as of Dec. 31, according to the filing. New York- based Soros Fund Management reported no holdings of Time Warner during the third quarter.