Why I Bought Disney at Its High
One of the lessons seasoned investors learn is that it's a waste of time to try and time the market. Another lesson is that winners generally keep on winning. These two lessons are amply illustrated if you have followed Walt Disney (NYSE: DIS) stock over the past few years.
The entertainment giant probably had its worst financial year on record last year. For full-year fiscal 2020 (which ended Oct. 3, 2020), sales for the year decreased 6%, largely as a result of the negative economic effects created by the coronavirus pandemic. The revenue drop would likely have been much worse except sales were flying high (up 36% year over year) in the fiscal 2020 first quarter (which ended Dec. 28, 2019). Decreases started in Q3 of fiscal 2020 and have continued into fiscal 2021, with a 22% drop in the first quarter (ending Jan. 2, 2021).
And yet, Disney's stock price over the past 52 weeks is up an impressive 73.7%.
Source Fool.com
