You're betting with the 8th richest man in the world
The best part about the story is Sheldon Adelson, he must be the most entertaining CEO out there, one of the richest men in the world he can say whatever he wants. Some gems from their recent quarterly call.
On the topic of executing their business plan and generating shareholder returns.
"You know my motto: yay dividends"
Another comment on the topic of shareholder returns and if they would buy back the Sands China stake which is Hong Kong listed.
Now, I'm a pretty large shareholder, but I get a boss too, called Dr. Miriam Adelson (his wife). And so, we all have bosses. But I consider all of our shareholders the boss. So, you guys are the guys that we're reporting to. We're trying hard to satisfy you. And although, I would like to buy back the – what we went public with in 2009 of Sands China and fold it back into LVS 100%. I think I'd rather take that $15 billion or $20 billion and give it out and start buybacks and dividends."
On the growth potential of the Macao market.
"I'll give you validation about this concept for Chinese people. From the time of Confucius, which was 3,000 years to 4,000 years ago, I don't really know. I never met Confucius. Nobody has been able to suggest that Chinese and other Asian peoples don't want to challenge luck. They've been wanting to challenge luck for 3,000 years and nothing, through thick or thin, tall or short, slim or fat, nothing has stopped them. And I don't think anything will. If there is a momentary blip in the road, it's like a speed bump in a private housing development, where people don't want you to drive fast, so any – look at the number that we increased VIP over last year. I mean, that's a number that's more than what the market itself has grown.
I don't understand, where people – I wish somebody could tell me – beliefs that go on for 3,000 years are pretty hard to break. And I don't know if anybody's tried for 3,000 years, but the fact that it's sustained itself for such a long period – I was talking to somebody yesterday about how long – where's the potential for supply and demand to cross? I don't know. And I think I'm a pretty smart guy. I can tell you, I don't think anybody could tell anybody with any degree of certainty where that line is going to cross. In any event, I don't see even during the result of the last great recession that we had. The market essentially – it didn't lose. I think the worst that it got was even from year-to-year in one year, and then it grew up again."
Always bet on Sheldon
There are plenty of risks the Chinese government's anti-corruption campaign has investors worried if casinos will be the next target. There has also been speculation that China will crack down on illegal fund transfers from the mainland to Macao. Other risks include supply with 8 new resorts planned to open over the next 3 years. While the anti corruption campaign is a real risk that has kept us away from the stock the integrated casinos are just as much a play on Chinese tourism. LVS is the leading destination casino developer with a billionaire founder that has the best position in Asia with a great track record. LVS have summed up their optimism in the following slide.