Is The Walt Disney Company going to make you richer than George Lucas

Monday, October 7, 2013

Is The Walt Disney Company going to make you richer than George Lucas


The Walt Disney Company (DIS) is currently the second most profitable Broadcast & Cable company in the world after Comcast (CMCSA and CMCSK) with annual sales of $42.8 billion, annual profits of $5.6 billion, assets of $80.6 billion and a market value of $104 billion as of May 2013.
Image credit: outstyle / 123RF Stock Photo

Can Star Wars increase annual sales by at least $19.8 billion and annual profits by at least $600 million by 2015 and finally become The Lion King?

Are Planes a sound investment?

The Walt Disney Company sells a lot of merchandise around the world. Anything from clothes to toys. I dare you to go outside right now and take a picture of every child on the street until you reach 100 pictures and then discard all of them without any Disney characters.

You can do the same experiment anywhere in the world, and you won’t find a place where you can discard all the pictures.

Parents are always buying more and more Disney products all the time. Sales were $38,063,000,000 in 2010, $40,893,000,000 in 2011 and $42,278,000,000 in 2012

Growth was 7% in 2011 which is insanely high for a company as large as this one and 3% in 2012 which is still pretty safe.

Only 25 companies in the whole world can compete with them. It is likely that at least half of those companies will be destroyed in the next quarter of a century, and also it is likely that at least 50 totally new companies will emerge from a garage armed with nothing but a pencil, a piece of paper and a lot of ideas for new characters.

An example of these young creative minds would be Christopher Paolini, Stephenie Meyer, Max Landis and Veronica Roth.

Maybe in the future, there will be a publicly traded company called The Christopher Paolini Company.

Google is just 15 years old.

Facebook is just 9 years old.

If you are a parent, then I suggest you to buy The Walt Disney Company itself instead of products made by the company. $65 is not a lot of cash.

$20 invested in 2009 are now worth $65

I bought the film 101 Dalmatians on VHS a few years ago. That product is totally worthless today. I did not know how to buy shares in The Walt Disney Company back then. Don’t make the same mistakes I did.

The Walt Disney Company is located in the United States of America, but you don’t have to live there to open a brokerage account. You can buy and sell shares with the click of a mouse over the Internet. It’s easy, quick and cheap.

Why buy a Buzzlight Year that is going to break within a year when you can send your child to Harvard in 10 years if you use that cash to buy a share instead of a toy?

Be smart. Toys are important but without a college degree from an Ivy League school, life will be harder for your children in the future. Keep in mind robots will replace a lot of human beings in the future.

You don’t need to be an expert in economy or finance to realize The Avengers: Age of Ultron, Thor: The dark world, Planes: Fire & Rescue and three dozen more films will sell $19.8 billion by 2015


There are only two types of persons in the world: Shareholders of The Walt Disney Company and moviegoers.

Do you want to see Disney movies or do you want to sell Disney movies?

Choose wisely.

There are only 1,790,000,000 shares of The Walt Disney Company in the whole world.

I can sell you a few of mine for just $65 today. In the future,  they will be worth $650 or maybe even $6500

Each share of Berkshire Hathaway (BKR-A and BRK-B) is worth more than $100,000 today, but that is a topic for another day.

Author: Alejandro GuillĂș Mendoza

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