The tragedy of the global coronavirus pandemic has resulted in the deaths of thousands around the world. The pandemic has also seriously impacted sentiment for investors looking a few years out. Without knowing how bad this pandemic could ultimately turn out to be, many are focused on determine when we could ultimately see the market bottom.
With that backdrop, building a watch list of companies to pick up on sale as valuations drop is an excellent exercise. I would certainly recommend Walt Disney Co. (NYSE:DIS) be added to such a list. There are serious concerns about Disney’s near-term revenue and cash flow impairments. Disney’s theme parks have closed their doors.
In addition, the company’s film division is likely to revenue decreases for the foreseeable future, as the various blockbusters the company has lined up will be delayed, and premiere when movie theatres reopen.
However, the long-term growth catalysts underpinning Disney’s rare business model remain strong. Should the company’s valuation drop further from current levels, this could turn out to be a heck of a long-term investment in the near-term.
Having a watch list with high quality companies one would like to own for the next decade or two is a great idea right now. Set a price you’d like to pay for these companies based on your projections of future performance and buy when your target hits your target price.
Invest wisely my friends.
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