Credit: Shutterstock photoGuru Mario Gabelli ( Trades , Portfolio ) is a contrarian investor who was born and raised in the Bronx, New York. Gabelli graduated from Fordham College and went on to attend Columbia Business School with an MBA. Shortly after Gabelli's graduation, he began his investment career at Loeb, Rhoades & Co. as a security analyst.
It was there that he learned from his boss John Loeb that small companies were better than large ones. Gabelli also learned to rate companies not by their earnings but by the company's cash flow statement. He learned to research and analyze companies in great detail to be able to calculate the price per share that someone would be willing to pay in order to buy the entire company.
Learning these mental models at an early age was beneficial for Gabelli, who gained enough experience to start his own investment firm GAMCO in 1976. The firm primarily focuses on diversified bottom up research on investments that create superior risk adjusted returns.
In the fourth quarter of 2015, Gabelli added 935,609 shares of Comcast Corp. ( CMCSA ).
Comcast is currently the largest cable service provider in the U.S. The company provides cable services, internet, home security, as well as phone and wireless services used with smartphones or tablets. The company was incorporated in Pennsylvania in December 2001 under the name Comcast. In 2010, the company changed their cable services name from Comcast to Xfinity as an attempt to improve their relationship with customers.
Comcast has a market cap of $137.94 billion, a P/E ratio of 18.60, an enterprise value of $183.92 billion, and a dividend yield of 1.68.
Below is a Peter Lynch Chart for Comcast Corp.
Comcast Corp. has a few good signs according to GuruFocus
The Piotroski F-Score is 7, which is a good sign for a healthy financial situation. The per share revenue is showing consistent growth. The operating margin is also expanding. The company's P/B ratio is close to a one-year low at 2.81.
Comcast has gotten off to a good start at the beginning of 2016, rising from $56.43 to $59.41 per share. I believe that Comcast is a lucrative short term investment, however, as Xfinity is going to need to continue to innovate because the cable subscription services that they provide are going to fade out in the decades to come.
Cheers to your investment success.
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This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
