Update on inflation in the US and on Disney with François Rochon

Disney+ subscribers were lower than expected at the end of the fourth quarter. (Photo: Getty Images)

Baldo. Inflation in the US peaked since 1990 in October, reaching 6.2%.

According to Francois Rochon, president and portfolio manager at Giverny Capital, investors should carefully monitor this data. “This means that investors, to avoid becoming poor, must ensure that their investments generate returns above 6.2% after taxes and net of all fees,” he explains.

Read also: Inflation: the investor’s worst enemy

François Rochon advises against investing in the bond sector at this time, because in the current environment, where interest rates are very low, each dollar will generate a return less than inflation.

Which led him to talk about Disney, which Giverny Capital has been a shareholder in since 2005. Even if the company does not miss the analyst consensus target in the fourth quarter of fiscal year 2021, he remains convinced of the success of the Disney+ platform and believes that reopening the economy will benefit the company’s activities in Hotel and cruise industries in a few years.

When all the company’s activities return to full operation, he expects record profitability by 2023 or 2024.

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