Every quarter, the holdings of the largest mutual funds and hedge funds are reported. Afterwards research reports reveal them to the general public. The 10 ten holdings for US Mutual Funds are: Alphabet (google), Microsoft, Amazon, JP Morgan Chase, GE, Facebook, Apple, Wells Fargo, Home Depot, and Pfizer.

For the hedge funds, the top 10 are: Allergan, Alphabet, Charter Comm, Facebook, Time Warner Cable, Microsoft, Apple, Amazon, Pfizer and Pepsi.

In the hedge fund group are some cable companies and an interesting play in cable companies is Viacom. Summer Redstone has been a dominate force for many years and the company he controls Viacom owns Paramount Pictures, Nickelodeon, Comedy Central and MTV. In addition Mr. Redstone controls the CBS TV network.  Mr. Redstone is 92 and is declining health, however through multiple voting shares he still controls the network. The companies are worth billions and still need to operate and this is where drama plays out. Mr. Redstone has long time advisors and a daughter who seem to be on opposites sides of the equation – is Mr. Redstone capable of making business decisions? If no – then someone needs to step in. If yes, then there needs to be a transition in place and someone needs to needs to step in. The pieces are worth money but the value of the stock is pushed down because of the health problems of the controlling shareholder.

To be President of the US means to accept a two term limit or 8 years; when someone has controlling interest in a public stock company, in theory they can stay as long as the company makes money. The problems of staying is the missed opportunities that happen as the Boardroom drama extends. One of the wonderful things on the way up was the influence of the founder in this case Mr. Redstone – he founded networks which appealed to young people and did very well. When you appeal to young people, they often ask what have you done for me lately? and find alternatives.

Linking to dividend paying stocks, part of the responsibilities of every Board is to look at successors and approve plans by senior management. Picking and choosing management to guide them through the economic cycles particularly when the company make money is the easy aspect of being on a Board. The harder part is the succession, trying to ensure people leave when they do not want to. When that part is finally done, then the company’s shares will increase because there will be stability in the Boardroom. The stability allows the  company to concentrate on ensuring it achieves maximum values from its properties, finding new opportunities or selling some of the assets to a willing buyer.

There are more questions than answers, till the next time – to raising questions.