Nygren: Disney's Value in Cable, Not Parks
Wall Street tends to focus too much on Disney's theme-park traffic and too little on the firm's cable operations, which carry the majority of Disney's value, according to Oakmark's Bill Nygren.
Shannon Zimmerman: The last time we spoke, we talked a little bit about Disney, and you were thinking about Disney during a period when theme-park attendance was sort of on the decline. Talk a little bit about that, your area of focus, and what made you feel good about purchasing shares even when the theme-park attendance wasn’t what Wall Street wanted to be.
Bill Nygren: A situation we like is when we think investors are applying the 80-20 rule inaccurately; 80% of their attention is on 20% of the business value. And that was a situation that we saw at Disney where theme park attendance had been down a little bit, and almost everything that was written about the company was about the outlook for theme parks and how that was likely to change over upcoming years.
Shannon Zimmerman has a position in the following securities mentioned above: DIS. Find out about Morningstar’s editorial policies.