I Bought 150 Shares Of Disney (DIS) On 8/27/2015

Feeling I should buy at least one more stock at reduced prices during this market sell-off, I decided to buy 150 shares of Disney and I got it at a price of $102.47.

Disney has had a bit of a rough time since its last earnings report that scared some investors. The stock came off its high of $122 and got hit hard along with many other media stocks. Add to that the insanity of Black Monday and the market panic and you have the stock down about 14% from its highs. 

Content Is King And Disney Has It!

Without a doubt, Disney is the gold standard of media stocks and that will not change anytime soon. They own ESPN, the Star Wars franchise, the Frozen franchise, Pixar, and countless other entities (you can find a big list here). The Disney company has been woven into our society for many generations and it is popular world wide as well. Not a bad company to own stock in!

There will be a new Star Wars movie this December and the hype surrounding it should reach deafening proportions in a couple of months. That could move the stock higher at least a little bit. And sometime in the future we have Frozen 2 to look forward to which is an eagerly anticipated sequel to the movie any parent of small girls has been forced to watch countless times. 

We hear so much about Amazon Prime, Netflix, and other content distributor services that are becoming so successful. One by one they realize that content is the most important ingredient and they are starting to spend 100’s of million dollars producing their own shows. That is what makes Disney so valuable as no company can match its catalog of all the movies, cartoons, and invaluable franchises that make money year after year. 

The Way We Consume Media Is Changing

After the last earnings call, investors seemed to be particularly worried about ESPN because subscribers were down. That sports channel is one of the biggest properties in all of television and it is a must have for any male who likes to watch sports. Cord cutting might be playing a part in that subscriber decline as all media companies face the reality that consumers are tired of cable bundles.

But I am confident that with time, Disney will figure out how move forward and market ESPN to its fullest potential. It might try offering a stand alone $15 a month service through Apple TV like HBO has successfully done and I would love that as I am a cord cutter myself.

In the end, I bought these shares of Disney for a long term hold and feel happy I got them well off their highs. The stock pays about a 1.9% dividend and trades at a P/E of close to 21.5. With the recent volatility of the stock market, there is a reasonable chance we may experience another sell off/panic of some kind in the near future and it that does happen, I plan on buying more Disney stock maybe at the $90 to $95 range. 

2 Responses to “I Bought 150 Shares Of Disney (DIS) On 8/27/2015”

  1. Sam says:

    Hey, This is excellent, I’ve constructed a book for educating myself about Finance and Investment including the stock market and I was wondering were to start with it. I’ve only done a contents page lol. I’m 17 now and know a small amount about stocks but got the important stuff like volatility, dividends, quarterly earnings reports etc. I have no money now as im at college training to be a plumbing and heating engineer so I can make lots more money on money so I’ve put together a 2016 Portfolio as I did for 2015 which gained 26.87% for the year which I was pleased with so I can see how much I could make over a year hypothetically. Can I ask what your occupation was or is other than a trader?

    Last year I quit school and tried to work out the best and most effective way to make money and after going through just about everything like businesses, start-ups, high paid jobs etc I concluded that stocks are by far the best because they require less physical effort and technically less risk compared to starting a business and they outperform interest and ISA rates year on year averaging around 10%, so being so young my risk tolerance is very low I can afford to take more risks with stocks rather than other things. So in conclusion your site is great cause I can watch how you trade and see why you select what you do and I can learn from mistakes and stuff considering I have 3 years or so to learn before I invest any money (following Warren Buffet’s way of not investing till you’ve read everything you can aha)
    Other than stocks there are far more ways to invest money like buying things like Lego and coins as Lego is popular across the world and when a set becomes retired it sometimes soars in value by up to around 2000% and coins never lose their face value unless different sizes are introduced which very rarely ever happens.
    Don’t really know why I just wrote all this. Anyway cheers for the info, keep it flowing, I need it :)

  2. Andrew says:

    I always forget the name of your blog for some reason and I have to search forever until I find it again. I am going to hit the fav button and put it on my list. I always type in “guy investing 150k” “buying 300k worth of stock”.
    I remember looking at Disney back in like 2010 when they were around 35.00 a share, I just never had the conviction to buy them. :-(. After watching this stock skyrocket I just cant find it in me to pay 100.00 a share for this company. I have seen you and a few other dividend / financial bloggers pick it up on its recent pullback, but I am still not convinced. So I guess I will sit on my hands here and still not be buying and perhaps in another ten years when DIS is trading at 300.00 a share Ill buy some :-p

    Oh and I think you made the right play selling FB stock when you did. This market is so volatile right now, stocks like that will get punished the worst.

    Best of luck on this one
    Andrew
    SHM

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