You are tortured with turning upside down, but still willing to pay to exchange for this experience. This is the glamour of Disneyland, a defensive recession-proof entertainment industry, which you could profit through investment partnership with Walt Disney stock, a nearly 100 years old business.
There are many mega theme parks in the world, why there are so many people fascinated about Disneyland? Personally I have been to Disneyland in Florida, California, Japan and Hong Kong. The new Disneyland is opening in Shanghai, overwhelming response, a new gold mine for the company. Disney’s power is with its intangible asset of brand, for so many years, from watching Disney cartoons to movies and all kinds of Disney related products. Everyone of us still has a childhood dream which becomes real only in the world of Disney.
Enjoy the rides, including the roller coaster. My first experience with roller coaster was in Six Flags Texas when I was still an undergraduate many years ago, trying the world Tallest wooden roller coaster at that time. The outcome is predictable, I was so nervous and scared, not enjoyable at all. After so many years of roller coaster experience, I learn to be flexible, following the trend of movement (eg. move the body when turning together), imagining it is only a swing or a bird flying in the sky, then I could enjoy it.
We can learn a lot about investment from the rides:
1) Following the mega market trend. It is painful when we try to move against it. Each of us should define our comfortable levels of rides, from short term trading, mid term trading to long term investing.
2) Cyclic movement, what goes up will come down. That’s why we should buy low sell high, not following our emotions of greed and fear. For experienced riders, they actually becomes fearful when roller coaster is hanging at the peak because they know the predictable next move: falling down!
3) At the end of ride, you will be fine. If we learn how to find giant stocks, regardless up and down in share prices, eventually the business is still making money each month and each year, we will become the final winner.
Walt Disney stock (NYSE: DIS), is falling from its peak of $120, currently at 65% long-term Optimism (see chart). In the last stock market cycle, an investor could apply Optimism Strategy developed by Dr Tee to buy Walt Disney at $24 (25% Optimism) in year 2009, selling at $120 (75% Optimism) in year 2015 with potential gain of 5 times. For investors, they should have sold the stock in 2015 as the risk of falling is 65% with limited upside (35%). At the same time, regional crisis including Brexit and economy slowdown, has created a mid-term low optimism, suitable for trading Walt Disney. The right action or strategy depends on our personality.
Walt Disney is a global giant stock worth consideration during crisis at Level 3 (country/regional crisis) or Level 4 (global financial crisis) for investing. The earning per share over the past 10 years is consistently growing (see chart). I am not surprised if this brand could exist for another 100 years because our children will pass this unique memory to future generations who may continue to pay for this childhood dream. We should learn when and what price to buy Walt Disney for trading or investing.
