In my column, last July, I set out the investment merits of Walt Disney Co and recommended that readers buy these shares.
This has worked out very well! The return on this investment is over 50 percent for the past twelve months. Not bad against a backdrop of poor stock market returns generally. This share and several others I have researched, are still a “must have” on any portfolio.
Moreover, 2015 will be a mega year for Disney. Shanghai Disneyland is opening soon and the hugely anticipated Star Wars movie will be released in the latter part of the year. The characters of each movie live on forever and significant boosts to profits are enjoyed by movie divisions, Broadway, Merchandising, the Disney Parks and even the Cruising division for many years to come.
Great companies like Disney, preserve their core values and vision but simultaneously adapt and reinvent their strategies and operating practices to cope with an ever-changing environment. Disney has a passionate belief in creative imagination, fanatical attention to detail and the preservation of the Disney ‘Magic’.
Fine tuning the ability to hold a core ideology fixed while adapting changing strategies and practices over time, and sticking to this strategy is the fundamental reason why Disney will continue to be so successful. Disney will again have many magical moments this year and an investment in these shares will be followed by many happy smiles in the years a to come!
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