Stories of the Companies We Invest In: WALT DISNEY COMPANY

Stories of the Companies We Invest In: WALT DISNEY COMPANY

10/15/2021

What do investments have in common with fairy tales?

Within our clients' portfolio, we invest in the S&P 500 index, which comprises 500 of the largest American companies. They are among the biggest and best companies in the world. One of them is Walt Disney Company.

The Walt Disney Company is a leading international family entertainment and media company. It operates in 5 segments: media networks, amusement parks and resorts, studios, consumer products, and interactive media.


It was founded on October 16, 1923, by brothers Walt and Roy O. Disney. In 1937, it introduced the first full-length animated film, Snow White and the Seven Dwarfs.

A few years later, on April 2, 1940, it went public. Its value is now around $319 billion and belongs to the most successful and powerful entertainment companies in the world. Walt Disney Company is a publicly traded company, with the Vanguard Group Inc. being its largest shareholder.

Disney and the Covid Pandemic

The pandemic was devastating for many companies, but Walt Disney Company diversified its assets very well. During the pandemic, it heavily benefited from the Disney+ streaming platform, which the company expanded into Europe. This helped offset the losses from the empty amusement parks that had to close due to the pandemic. Millions of households could watch not only their favorite fairy tales from the comfort of their living rooms. At that moment, it was a brilliant move. The company's stock surged upward (see Disney's stock price graph) and recorded incredible growth. Walt Disney Company was able to thrive even as some of its segments faced challenges.

Lesson Learned?

Diversification is key. It's not wise to bet everything on one horse. Disney has been relying on it (and doing it well) for several decades. Similarly, we at Melior Invest also emphasize it when constructing investment portfolios for our clients. We always ensure that if one component (fund/region/economic sector) faces short-term failure, others grow.

Would you be interested in knowing what investment allocation would suit you best?

Do not hesitate to contact us

Contact

Ing. Petra Štěpánková, MBA, EFA

+420 604 218 602

petra@meliorinvest.cz

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