Berkshire Bets on Content
The following video is part of our "Motley Fool Conversations" series, in which technology editor and analyst Brenton Flynn discusses topics across the investing world.
We are in the midst of a paradigm shift in video consumption. New content distribution channels have emerged that facilitate the use of smartphones and tablets as tools for viewing our favorite shows. Streaming services are no longer perceived as innovative technologies but are rather an ubiquitous presence for consumers as they determine the best way to summon their inner coach potato. While these new distribution channels including Netflix, Amazon Prime, and Hulu have collected the majority of the headlines of late, I have an inkling that the content providers themselves will end up reaping some awesome rewards in the long run.This is why one of Berkshire Hathaway's latest moves caught my attention. The move, a small $75 million investment in cable network and movie production outfit Viacom, is interesting given that Berkshire already had a large stake in Liberty Media, which owns a minority interest in Viacom. Does this move suggest that the Oracle's minions see content producers as the victors in the streaming video revolution?
Away from media, one industry Buffett's Berkshire has tons of exposure in is financial services. Lately, the financial heavies are getting a lot of press, and much of it is negative. But there's one small bank that's flying under the radar. It has some of the best operational numbers you'll ever see. The Motley Fool featured it in its brand new free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Buffett would probably be interested in if he could still invest in small banks, just click here.
At the time this article was published Brenton Flynnowns shares of Amazon.com and Netflix. The Motley Fool owns shares of Amazon.com, Berkshire Hathaway, and Netflix.Motley Fool newsletter services recommendAmazon.com, Berkshire Hathaway, and Netflix. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.