"Never argue with a man who buys ink by the barrel" is one of my favourite aphorisms — and one I was reminded of by Lakehouse Capital Chief Investment Officer Joe Magyer only the other day.
But when you're arguing about someone who does, what's the protocol?
If there's a hotter hotbed of takeover rumour and speculation (and a little fact) than the media sector at the moment, I don't know it.
Will Ten Network Holdings Limited (ASX:TEN) survive? Will Nine Entertainment Co Holdings Ltd (ASX:NEC) merge with Fairfax Media Limited (ASX:FXJ) before the latter is taken private? And what does that mean for Seven Group Holdings Ltd (ASX:SVW) and News Corp (ASX:NWS).
There may yet be more (these days largely virtual) ink spilled before the dust settles… and I'm not rushing in.
There are times to be bold, and times when sitting back and watching makes sense — especially with the New York Times opening an Australian bureau, The Guardian wanting more eyeballs, Netflix fighting for the entertainment dollar and the 400lb Gorilla in Google's YouTube all to contend with.
Sometimes the best action is not taking action at all. Or finding a better place for your money, like some well-vetted blue chips that should be lower risk than this lot.
