After all, since you are giving so much money to Disney, shouldn’t you get some of it back as an owner of the company? Wouldn’t it be nice to enjoy some of the stock dividends and participate in the (potential) growth of the stock? And since Disney produces quality products – ones that you buy and believe in – doesn’t it make sense to invest your hard earned money in the company?
Quality Product Does Not Equal Quality Stock
Disney certainly is a quality organization that produces quality products, but that doesn’t necessarily mean that you should run out and invest in the company’s stock. Purchasing good products – like Disney World tickets – is a very different exercise from purchasing good stocks that will make money for you.
Selecting quality stocks is a very different job from selecting quality products.
Beware Emotional Attachments
If you really appreciate the products a company makes, it can be harder to make objective decisions. The financial world is cold and calculating – kinda like some Disney villains. It is controlled by millions of different factors – from pension fund managers to the weather, from organizations missing a projected profit by one cent to long term economic trends.
Most financial advisers will tell you that you should make your financial decisions based on professional recommendation and an analysis of the numbers – not on the attachments of your heart.
Ok, So Should You Buy?
If you are considering a stock investment, there are many factors to consider. I’m not a financial professional, so I suggest you consider consulting with one. However, it often makes sense to look at current analyst ratings. Professional analysts will give their opinion on whether they think you should buy, hold, or sell an individual stock.
You can check out a summary of many different analyst recommendations on financial and news web sites from companies like Reuters and MSN Money.
You can also view the latest stock price and trends using stock ticker tools like this one from Yahoo:
The Single Share Alternative
If you still want to purchase Disney stock, one good way to get started is by purchasing an individual share. Most large financial institutions don’t have a minimum number of shares that you have to purchase, but it might be costly in fees to buy just one share from traditional brokerages. Also, they typically don’t send you the paper share certificate – which in the case of Disney is not just a piece of paper that conveys ownership but is also a beautifully illustrated piece of art.
An alternative would be to use companies that specialize in purchasing single shares and framing them. Some will even add custom engraving before they send it to you. Organizations like One Share and Share In A Frame offer this service.
Purchasing a single share can be a great way to introduce children to investing. Knowing they own a piece of the magic, they may have a sudden interest in stock quotes and earnings dividends. And purchasing a single share can be a great way for you to get started in investing too.