originally published in late 2003, I thought that Apple, Disney and Pixar should get together long ago, and that Apple would be one of the key players in the digital entertainment future. Now we are reading that Steve Jobs may sell Pixar to Disney's Iger and that he may become Disney's largest shareholder.
If you would have been lucky enough to have purchased these respective stocks at the end of 2003, you would now be up 620% on Apple [nasdaq:AAPL], 11% on Disney [nyse:DIS] and 69% on Pixar [nasdaq:PIXR]. That compares to about 15.7% on the S&P 500 and and 14.3% on the Nasdaq. Had you purchased $10,000 in each stock I mentioned your $30,000 investment would now be worth $90,000. Not too shabby for just over two years. Unfortunately I didnt act on my own predictions. Anyway, I am still bullish on Apple and if Jobs becomes involved with Disney I would become a bull on that stock also. Disney desperately needs Pixar as well as a visionary leader like Jobs, who can put them at the forefront of the digital future. Disney has a number of underutilized assets including ESPN. In fact I think that Disney should buy Electronic Arts [nasdaq:ERTS], which owns the most important big league sports gaming franchises like Madden 2006. As I said in an earlier blog posting, the next major area for Apple to become a leader in is gaming. They are the perfect company for that huge and growing market. Imagine if Apple, Pixar, Disney and Electronic Arts (Full Disclosure: I own ERTS] were all on the same team?
If you would like to read my latest bold prediction, which involves Google [nasdaq:GOOG], which I happen to own, click here.
