Prediction: Disney Will Beat the Market. Here's Why
Over the very long term, the S&P 500 has generated an annualized total return of about 10%. This kind of gain is hard to argue with -- and over extended time periods, compounding can really make a big difference. Investors who pick individual stocks most likely do so with the intention of trying to outperform the widely followed benchmark. This is no easy task. It's partly about choosing businesses that have favorable characteristics. It's also about having the right mindset.In the past five years, investing in Walt Disney (NYSE: DIS) would've ended up costing you 12.5% of your starting capital. That disappointing performance will make the following statement surprising: I predict that the House of Mouse will beat the market over the next five years.Continue reading
Over the very long term, the S&P 500 has generated an annualized total return of about 10%. This kind of gain is hard to argue with -- and over extended time periods, compounding can really make a big difference.
Investors who pick individual stocks most likely do so with the intention of trying to outperform the widely followed benchmark. This is no easy task. It's partly about choosing businesses that have favorable characteristics. It's also about having the right mindset.
In the past five years, investing in Walt Disney (NYSE: DIS) would've ended up costing you 12.5% of your starting capital. That disappointing performance will make the following statement surprising: I predict that the House of Mouse will beat the market over the next five years.
