5 Best Tech Stocks To Buy Now According To Billionaire Laffont

1. The Walt Disney Company (NYSE: DIS)

Shares of Walt Disney (NYSE: DIS) grew close to 4.5% this year, extending the six months gains to 53%. Coatue Management increased its stake in the world’s largest entertainment giant by 17% to 7.49% of the overall portfolio. Economic reopening and easing social distancing policies is the catalyst for Walt Disney’s share price.

Semper Augustus Investments Group, an investment management firm, highlighted a few stocks including Disney in the fourth-quarter investor letter. Here is what Semper Augustus said:

“With few exceptions, portfolio activity added tremendous earning power. Sales were generally undertaken at high prices where price gains had outstripped fundamentals and thus as earnings yields diminished. Buys added wholesale earnings power. When numerous holdings plunged in price in March and later, we both added to and initiated positions at high single-digit expected earnings yields.

Portfolio activity in Disney provides an example of the opportunity the year brought. Disney was originally purchased in 2018 prior to the closing of their merger with Twenty-First Century Fox (21st Century Fox). Disney’s shares were weak during the prior four years, largely due to the well-known fact that cord cutting was harming Disney’s valuable ESPN franchise. Hard to believe in my household but some people evidently don’t enjoy watching televised sports, and as the highest priced platform in the traditional cable or satellite bundle, a loss of subscribers comes with a loss of revenue. Further, the merger-arbitrage community had bid up the price of Fox and down the price of Disney shares. At $100 per share, Disney traded for roughly 15 times then its earning power.”

You can also take a peek at Billionaire Ken Griffin’s Top 10 Stock Picks and Billionaire Nicholas Pritzker’s Tao Capital’s Best Stock Ideas.

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