Walt Disney Co. (DIS)

A great company. He missed it, and if it had a meaningful pullback, he would be in the stock. Valuation is outrageous at 25X. There is no question that they are doing everything right and are compounding capital. Can they continue to compound capital at 25X? He is not willing to bet his money on it.

(A Top Pick Aug 6/14. Up 39.88%.) This has everything going forward. Has a strong set of movies on the Marvel side, a very strong book in animation and the parks are doing very, very well. A fantastic company.

This stock has been invincible, even through the volatility of the last few months. Wait for a pullback of 3%-4% and then jump in. They have very good visible cash flow. Everything is working in their favour in terms of the studio, theme parks, ESPN. Be patient.

Recently added to his holdings. It has gone on a big tear. Star Wars is kind of baked into the cake, but you’ll probably get another kick at the can on that one. Summer months are the strongest months for big releases. Have had some pretty successful movie launches. Theme parks are working out exceptionally well and lower gasoline prices encourage people to attend. Cruise ship operations are working very well. ESPN continues to fire exceptionally well. Potential returns could be kind of muted as it is trading at close to 23X earnings.

(A Top Pick July 24/14. Up 35.62%.) When consumers have a bit more money, they spend it on travel, going to the movies, etc, and this company happens to be in the centre of all that. They continue to churn out product and new content. Their theme parks are doing remarkably well. They have a great runway of products coming in front of them. Great dividend growth.

This is one of those stocks that is always a Buy. If you asked him for one pick that he would have owned for the last 20 years, it would be this one. They continue to deliver on every metric. Valuation is still not that excessive. Thinks they can do something better than $6 in earnings next year, and that is still under a 20 multiple.

The valuation is very well supported by the earnings growth, which should go up by about 40% during the next 3 years. You are also going to get some very healthy dividend growth. Dividend yield of 1.15%.

The most dominant media entertainment name out there with its multiplatform of theme parks, consumer products, films and television. Have done brilliant acquisitions, which are going to spell benefits for a very, very long time to come. Just announced they are going to pay a dividend twice a year instead of just once. Dividend yield of 1.15%.

This will be a major beneficiary of increased consumer spending when it comes. They have some blockbuster movies coming which will probably do well. A negative for them is the strength of the US$, which will hurt it for foreign visitors. As far as Canadians buying US shares, it is difficult because the dollar is down at around $.80. The dollar looks vulnerable here, so it could be a plus to own this.

This has been the greatest growth stock over the past 40-50 years. What he likes is the way they continue to change and adapt to the market that is out there. More importantly is that they take all of the content and cross sell it in the various media, whether it is television, gaming, merchandising, theme parks, etc. There is no bigger owner of content globally. Market multiple is only 20X for all of this. Dividend yield of 1.04%.

There is no sign of a top in this. One of a handful of consumer stocks that still wants to go higher. If you are a long-term investor, you stay with it.

Not only do you have the one Star Wars, you have 2 other additionals. You get things like the Avengers and some of the real franchise positions. The real positive with this company is that they really get it all across the board. They have been spending like crazy on the theme parks which are finally coming to fruition. When it comes to re-releasing it on DVD or via the internet, they control it. Yield of 1.04%.

(A Top Pick May 14/14. Up 36.44%.) They have 2000 Marvel characters they are putting on the big screen. Their Avengers II movie opened last night in China, and did $32 million in one day. The Chinese market has exploded which is going to be very good for Disney. Their parks, with gasoline at a lower price, are getting a lot of business. An extraordinarily well-run company.

This is the best growth stock over the last 50 years. They continue to reinvent and reposition themselves. Only trades at 20 times. A classic great growth story. The valuation is at the high end, but long term you should own it.

Disney (DIS-N) or Starbucks (SBUX-Q)? Dissimilar companies. He doesn’t own either, but if he were, it would probably be this one because he likes the long-term prospects for entertainment. Dividend yield of 1.08%.