Did I Make a Mistake Re-Investing in Disney (DIS)?
Granted, I’m glad I only bought 50 shares of Disney stock, so it could’ve been worse, but I am not afraid to admit that I made a mistake with Disney and bought on the wrong side of Profit/Loss margin, so I’m losing money on this position.
But my logic told me that Disney is a great company to invest in, especially with the great success of the live-action Beauty and the Beast. And, the sequel to Guardians of the Galaxy was a huge hit as well.
So, what when wrong with Disney?
- Overall, attendance was down in many (if not all) of their theme parks. Why? Well, Disney keeps raising their prices for entry.
- Euro Disney, renamed Disneyland Paris, has been the worst performing of the Disney theme parks, for some reason. Attendance has been down in the past 5 years.
- Hong Kong Disney’s attendance has been down as well.
- ESPN, owned by Disney, has been suffering viewership as of late, and there has been layoffs this year and even a series of layoffs back in 2015. It’s just that, with many TV viewers cutting the cord and seeking alternative sources for sports (like iPhone Apps, for example), ESPN’s problems won’t be going away anytime soon.
On the Plus Side…
- Disney has always been considered a growth and dividend stock. Disney has had its ups and downs with regard to stock price, but usually a Buy-and-Hold strategy is best with Disney, rather than try to capture short-term gains.
- We still have yet to see the profits show in the quarterly earnings reports for the current blockbuster movies in 2017, and we still have another blockbuster Star Wars movie to be released later this year. So, I am banking that 3rd and 4th quarters will be more profitable. And the stock should bounce back.
I plan to hold Disney stock for the long-term, collect the dividends, and look for the best time to buy the dip.