People make investments for all kinds of reasons. But if there’s one piece of advice that I subscribe to it’s “buy what you know.” And believe me, that doesn’t necessarily mean you have to be an expert in your field. It doesn’t mean that you have to run charts. It doesn’t mean that you have to do analysis and read annual reports until your eyes are bleeding. In my eyes, it just means you have to be informed. You have to at least “know” something about what you’re investing in. Then once you commit to owning something you have to take mental ownership over that decision. Is it that simple? I truly believe it can and should be that simple. I personally have all kinds of reasons for the investments I make. And those reasons aren’t always the same. Eventually I’ll explain the various reasons I own the things that I do. To start, today I’m going to dive into exactly why I own stock in Disney.
My last trip to Disney
Around three years ago my family and I went on a trip to Disney World in Orlando, Florida. Joining us was my mother-in-law. From the moment we got off the plane things just felt different. Those who have been to Disney World know exactly what I’m talking about. You may have been to Hershey Park. You may have been to the local carnival. Hell, you might have been to a Six Flags somewhere near you. But there’s just something special about Disney. There’s this “twinkle” you get in your eye whenever you look at a Disney Property or Disney Branded anything. I think part of it is just the stellar reputation that the company’s built up over the years. But it’s more than that. It’s that “magic” you feel that you felt when you first went there as a kid.
The parks themselves
Whenever you step into that gate, it’s like entering a world that’s a step above the rest of any imaginary world you’ll see at any other park. But it’s not just that. It’s the attention to detail. It’s the sheer “holy shit” factor you’re thinking when you get a look at some of the stuff they’ve got in there. The only park that needs updating is Epcot center and I’m sure whatever that turns into will be one hell of a site to see. Virtually any ride or attraction you see at this park is a positive. Even if it’s not great you’re thinking to yourself “only at Disney.” I mean I might change the wait time for some of these rides. That’s a bit annoying. But have you ever seen some of the lands they create? It’s simply incredible. I remember going on Avatar rides thinking to myself “you have to be kidding me.” Very few parks in the world can “hypnotize” you the way Disney does. It’s that good.
In case you didn’t notice when you were there, Disney is a fine oiled machine. If everything seems like it runs smoothly, it’s because it does. Yes, rides break from time to time but you’ll find that most of not all experiences you have there are orderly and done in a manner that’s completely deliberate. From the way lines are organized to paying for food and merchandise, every single facet of the parks have a system, and it’s those systems that keep the place running smoothly. Disney has covered every possible detail you can imagine, and it’s that attention to detail that makes everyone’s experiences there so rich and worthwhile. And remember, I’m not even talking about their finances or anything of that nature. I’m strictly talking about how operations are run at the parks and the hotels. You won’t find a better operation within the theme park industry.
Do you realize how many parks, carnivals, and playful events are just full of disgusting garbage? When is the last time you saw an overflowing garbage at a Disney Park? Remember when Disney reopened from COVID? Most people were saying it was safer to be at Disney World than almost anywhere in the country. And that was the truth. I’m no germaphobe, but since COVID hit I’ve definitely paid more attention to hygiene. Disney has always been at the top of the list when it comes to being clean.
Everything I just said about the parks is just about equivalent with their hotels. No, they’re not all as nice as some of the nicest five-star resorts in the world but as a package? Disney hotels are 100% stellar.
The “addiction” factor
This is the biggest factor of them all. This is the one that put me over the top. While there’s something “magical” about Disney and you clearly know there’s an “it” factor, the true magic of this place is in its ability to make every family NEVER think about spending money. Have you noticed this? They raise ticket prices every single year. Doesn’t mean a thing. You see families of all incomes there. Doesn’t matter. You see a sweatshirt that costs $50 and you buy it without even giving it a second thought. That’s the hidden value. That’s the reason why the second I came home from my trip to Disney World, I bought the stock. It’s because people will spend money hand over fist and never even give it a second thought. Disney’s not a company anymore. It’s an experience. It’s a symbol. When a company has transcended being a company? It’s likely a solid investment.
Even Today – Practical Reasons
Three years after my trip and I’m just as sold on Disney as I was then. Probably even more so now. But just to bring this home a little bit more, let’s get into some more reasons why it’s a no brainer to own Disney stock.
- 60 min wait time on the phone – just the other day my wife was on hold for over 60 minutes to get in touch with someone about our reservations. An hour. Yes, an hour. She told me it was like this for 3 days.
- Disney Plus and Marvel – Disney’s park business could tumble today and they’d still not only survive, but thrive. Disney Plus is killing it and their Marvel acquisition just keeps getting bigger and bigger.
- Book a year in advance – Have you ever tried booking a Disney trip lately. Almost all of them have to be done nearly a year in advance. That’s how in demand Disney still is. I don’t see that changing any time soon.
Zero technical analysis and put it all together
Not one reason listed above with regards to why I own Disney stock came from a financial report or me reading any type of analysis of the company itself. I know little about their leadership, P&L, history of dividend payouts, PE ratio, you name it. I know enough, but certainly not the kind of information an analyst would know. None of that mattered to me when I bought the stock. Experiencing Disney firsthand was enough for me to make the decision. Now, not all stocks are like this for me. Disney’s an exception, with a few other stocks that I own. It’s one of those companies where you can simply see just how much an effect the company has on people to know that it’s a no-brainer stock to buy.