Yesterday, CNBC interviewed Bill Smead of Smead Capital Management.
“So what?” you ask.
Well, Mr. Smead’s company owns about $80 million of Disney Stock. And, right now — following Disney’s quarterly earnings report — Bill is feeling pretty good about owning shares in The Walt Disney Company.
CNBC’s Matthew J. Belvedere explained:
Disney‘s brand loyalty, built up over nearly 100 years, and its ability deliver those movie, media and theme park brands to new generations of families sets up the company and its stock for years of success, Smead Capital Management founder Bill Smead told CNBC on Tuesday.
“You’re getting a great risk-reward ratio right now,” said Smead, whose investment firm owns about $80 million worth of Disney stock. The shares, which are up about 2.7 percent in 2019, are lagging the S&P 500‘s nearly 9 percent year-to-date increase.
“The thing about the Disney Corp., is a child is born in the United States and they’re almost automatically a customer…”Bill Smead, Disney Shareholder
Parents and grandparents can’t wait for the kids to experience the Disney ecosystem, he said.
“Therefore parks and movies and brands and characters just incredibly flourish because of the incredible goodwill attached to two prior generations of family before they come,” he contended, a day after Disney reported better-than-expected quarterly earnings and revenue.
And going forward, Smead believes there are reasons to be very optimistic, particularly with the coming of Disney+:
On the streaming side of the equation for Disney, “content is always king,” Smead said. “No one can touch their streaming content,” he contended, pointing to sports from ESPN and movies and original television shows from the entertainment group.
Be sure to check out the full article and video and think about the following question: If you had the means, would you invest heavily in Disney stock?
Let us know in the comments below…
Disclosure: The author owns ONE share of Disney stock…