Warren Buffett considers buying Disney stock again due to strong moat and growth prospects.

From Nasdaq: 2024-06-21 08:35:02

Warren Buffet has been selling stocks consistently for six quarters, warning of a possible $200 billion cash pile by the end of the current quarter. Berkshire Hathaway hasn’t found many investments that fit its framework, leading to speculation about a potential net selling of stocks in this quarter.

Buffet admits to mistakes like not buying Alphabet or Amazon early and selling Disney stock, anticipating a significant missed opportunity for billions in returns. With Disney trading marginally higher since 2014, the question arises whether Berkshire should consider buying the company now.

Buffet views Disney positively due to its strong competitive advantage and iconic global brand. Disney’s parks and movies franchise contribute to its appeal, despite challenges in its streaming business. The company has initiated growth initiatives, including a sports streaming platform and a partnership with Epic Games for a video game investment.

Disney presents a good investment opportunity for Buffett, characterized by strong moat, competent management, and growth prospects. With attractive valuations and reasonable growth potential, Disney aligns with Buffet’s investment criteria, making it a “Buffett-type stock” worth considering for investment.



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