Yes, it’s magic time.
I can’t wrap my mind around the idea that Disney’s stocks trade at approximately $140 per share. Some of you might think this is actually already starting to get expensive – but to me it’s the biggest gang of the year given all the info that we have so far on Disney’s future business plans.
When I buy stocks, I try to follow Mr. Buffet’s idea of trying to buy shares in companies that he considers “moats”. That is, industry leading companies that have it nearly impossible to be overthrown by competitors.
The Walt Disney Company is the biggest moat on earth. They are the best story-tellers on earth and hell; they know how to make money like few other companies do.
And you know what the best part is? Story telling isn’t going away anytime soon. It’s been around ever since humans landed on this beautiful planet of ours.
If you haven’t done so already, you better start buying Disney shares immediately. In November, Disney will be officially launching its very own streaming service, Disney+, and let me tell you… It’s going to sky rocket Disney’s stock price sooner than later.
The amount of people that will be cancelling their Netflix/Hulu subscriptions will be outstanding. Maybe not right off the bat, but over time we will definitely see how Disney will take over a big chunk of the market. I mean, just think about all the content that they’re going to be putting out there…
- Walt Disney Productions (Classics such as the Lion King, Mulan, Tarzan…)
- Pixar Studios (Toy Story, Frozen, Inside Out…)
- Marvel (Pretty self explanatory)
- Star Wars (Again, pretty self explanatory)
- National Geographic (There’s actually a lot of content here)
- FOX (Avatar, The Simpsons…)
- All the new and exclusive content being produced for Disney+
The small catch here is that Disney still has many licensing agreements with cable providers all over the world. For that reason, we might not see a drastic switch from Netflix to Disney+ all around the world right from day 1 since some countries’ content availability might yet be limited and not so appealing. But, without a doubt, I can see how Disney+ is going to help bump up its shares’ price.
By the way, quick reminder – Disney pays a quarterly dividend! I got paid 88 cents per share late in July. I won’t tell you how many stocks I actually hold from Disney – you’ll have to sign-up to my newsletter if you want to find out. But this means that sometime around November (what a coincidence, just about when Disney+ comes out!) Disney will be paying another 88 cents per share to all of its stockholders.
Damn, I love holding stocks long-term.
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Full Disclosure: I own Disney shares and my opinion should not be taken under any circumstance as financial advise. I am not a financial advisor and should not be held accountable for your investment strategies.
