Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (TSM): What You Should Do in a Market Selloff

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The company’s theme parks have been able to attract hundreds of millions of visitors, and it is currently the company’s fastest growing segment. The company’s parks and resorts segments grew revenues by 14% year-over-year in the most recent quarter. That specific segment was also able to grow operating income by 73% year-over-year.

The company uses media to build an identity around its intellectual property and brings it to life using real estate. The company has $75 billion in assets and has more in assets than any other media company in the world. Out of all the publicly traded companies in the United States, Walt The Walt Disney Company (NYSE:DIS) ranks in the top 97th percentile in assets.

Analysts on a consensus basis anticipate this company to grow earnings by 12.37% on average over the next five years. The company pays a 1.15% dividend yield to investors and trades at a 19.5 earnings multiple. The multiple is fairly reasonable when considering the company’s long history of growth, and the potential upside it can experience from its Disney parks and resorts segment.

Conclusion

The stock market can be extremely volatile at times. Both The Walt Disney Company (NYSE:DIS) and Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) are compelling investment vehicles as they are well-positioned and have compelling business strategies. Going forward I believe that the stocks will outperform in a cyclical economic recovery.

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Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney.

The article What You Should Do in a Market Selloff originally appeared on Fool.com.

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