Why Warren Buffett Should Start Buying Disney Now

It's no secret that, once upon a time, Warren Buffett once owned a tiny entertainment and theme park operator called Walt Disney (NYSE: DIS). But that was in the 1960s, turbulent times for the markets, and Buffett and company sold their stake after a little over a year of ownership for a tidy 50% profit. Sounds like a great move, except for one little problem: Disney has since grown into the world's most recognizable entertainment factory, and Buffett has foregone billions in profits along the way.

It's never too late to fix a past mistake, though, and the recent downturn in Disney stock looks like the right time for Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) to make amends. As I (wrongly) opined at the end of March, I wasn't in a hurry to add to my position due to there being too many question marks surrounding the company's performance in the midst of the coronavirus lockdown. Besides, the House of Mouse already makes up about 5% of my portfolio.

But for an investor starting from a position of zero -- especially the world's most famous value investor -- Disney looks compelling after its fiscal 2020 second quarter.

Source Fool.com