How much must you invest in the Walt Disney Stock?

Question

The initial investment is a $1,000 with other fees associated with it, but how much must you invest in a Disney stock in order to get a high rate of return ? How long must you keep your share in there for it to make good money? My guess would be much more than a $1,000 to get good money for down the road. Lets say someone had at least 1 share for several yrs, how would it do?

Answer 1

The minimum amount of money necessary to buy any stock is the price of one share plus commission. In general you want to buy enough stock in a company to minimize the commissions you pay as a percentage of the purchase--paying $20 to buy and sell a position in a stock isn't prohibitively expensive if you've made a $1000 investment (2%) but it can be if you've made, say, a $100 investment (then it's 20%) for the following reason: say the stock goes up 10% and you decide to sell it. On the $1000 investment you'd make $100 before commissions and $80 after. On a $100 investment you'd only make $10 and lose $10 after the commissions.

The long and the short of it is that you can easily make money off of a $1000 investment--this is about the minimum amount of money I put into investments I make--however don't bother turning around and selling it if it goes up 2%, it needs to go up more to really make you a profit.

As for how long you'd need to hold it, there's no really good way to tell. The stock could jump 25% in a month, it could go sideways for a couple of years, it could go down. Over the long term--and by this I mean years--I would expect a solid company like Disney to continue to do well, and it doesn't seem to be trading at an outrageously high price right now, just to glance at its price and its PE. But I'm not an expert on the company, and you may want to do plenty of research before you buy. Good luck.

Answer 2

With Disney's Direct Investment Plan, that $1,000 would get you roughly 28.5 shares right now. You could also do dollar cost averaging, investing regularly every month in the plan. I dont know what their minimum is for subsequent investments. As to a rate of return that depends on their rate of earnings growth, and the dividend which if reinvested compounds. According to Yahoo analysts expect Disney to grow about 13 percent annually in the next five years.

Answer 3

Disney stock is too expensive. If you have 1 share for several years (10 years), you wouldn't gain much. You would probably gain a few pennys to as high as under $5.

Answer 4

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