by winston » Sun Dec 27, 2015 9:36 am
not vested
Large-Cap Stocks to Buy: Walt Disney (DIS)
Although, I personally am not a fan of their amusement parks, Walt Disney (DIS) is at the top of my list of large-cap stocks to buy.
Currently many investors are saying DIS is a little expensive, trading at [b]22 times past earnings,[/b] as DIS is on the verge of releasing what could be the biggest blockbuster movie of all time and a true game changer for the stock with the new Star Wars movie.
But regardless of what happens with Star Wars, let’s take a look at why Disney tops the list of large-cap stocks to buy today, tomorrow and anytime time you have extra money to invest.
When you buy DIS you are purchasing a company with stability, revenue reliability and long-term staying power due to the multiple business units Disney operates in.
Having multiple business units is highly sought after because if one unit is struggling, the others can make up the difference. But even more than that, the harmony in which each unit leverages the success of the others makes Disney a one-of-a-kind organization.
From the outside the different units may all look like a random assortment of diverse businesses.
But Disney’s ability to leverage network stations such as ESPN, ABC or the Disney Channel to promote other Disney-backed projects (think movies), which it can then incorporate into its theme parks, serves to increases merchandising, thus bringing it full circle to Disney’s Television Group for new ideas.
This whole process also takes what would normally be a one-time and one product customer, turning them into a multiple product life-long customer.
Thinking of the long-term, if the Star Wars reboot or any other major Disney backed project turns out to be a bust, Disney should easily be able to survive. The company was ranked #11 on Forbes list of the “World’s Most Valuable Brands in 2015,” which gives it the strength to work through a few possible missteps, if they were to occur.
Source: Investor Place
And did I mention Disney is the 30th largest company in the world based on market cap, making it one the largest, large-cap stocks?
It's all about "how much you made when you were right" & "how little you lost when you were wrong"