One of America’s beloved companies has produced an annualized return of 12.8% over the past three decades, easily beating the 7.5% annual return on the S&P 500. From its 2011 lows to its all-time high in August 2015, the stock surged more than 350% as investors clamored to grab their stake in one of the world’s most recognized brands. And during this time, its trailing price-to-earnings (P/E) ratio more than doubled. As a die-hard value investor, I found it difficult to justify buying shares given how expensive they were. But now, with the stock trading at a nearly… Read More
One of America’s beloved companies has produced an annualized return of 12.8% over the past three decades, easily beating the 7.5% annual return on the S&P 500. From its 2011 lows to its all-time high in August 2015, the stock surged more than 350% as investors clamored to grab their stake in one of the world’s most recognized brands. And during this time, its trailing price-to-earnings (P/E) ratio more than doubled. As a die-hard value investor, I found it difficult to justify buying shares given how expensive they were. But now, with the stock trading at a nearly 20% discount to its all-time high, I’m ready to pull the trigger. The House of Mouse Is Finally Affordable Shares of The Walt Disney Company (NYSE: DIS) have been under pressure since August, when CEO Bob Iger acknowledged subscriber losses in the media segment. This segment accounts for 45% of sales, and the warning sent shares tumbling. #-ad_banner-# After a quick rebound, shares plunged again when a November regulatory filing confirmed the negative trend. For instance, Disney’s most profitable channel, ESPN,… Read More