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A Case Study: The Disney Company

A Case Study: The Disney Company


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In the coming months, we will provide various case studies to show the capabilities of a trend following strategy along with Buy and Hold.

This exercise is designed to demonstrate the benefits of limiting risk while simultaneously growing wealth in a specific stock over time.

Here is the Process we followed:

We went back to March, 2018 in order to have a reasonable length of time to carry out the study and watched the market data for an uptrend.

When the price reached 15% above the most recent low, the first buy was initiated for both investors, TF and BH. Each portfolio began with $5,000.00.

Fifteen percent (15%), in this case is an arbitrary number. Each time the stock declined by 15% from most recent high, TF’s trailing stop loss sold the stock and BH held.

TF would rebuy the stock when the price rebounded from most recent low by 15%. The process continued until April, 2023.

Let’s take a look at a company we are all familiar with, the Disney Company and whose shares many people want to own.

The Transactions

The following shows each Buy/Sell activity for TF as well as the High and Low price which drove the activity.

  • On 4/5/2019, each investor bought 43 shares of DIS @ $116/share for a total investment of $4,988.00.
  • On 11/29/2019, DIS reached High of $151.50.
  • On 2/24/2020, TF sold 43 shares @$128.85 generating $5,540.55.
  • On 3/19/2020, DIS reached a Low of $85.76.
  • On 4/7/2020, TF bought 55 shares @ $99.58/share for $5,476.90.
  • On 3/8/2021, DIS reached a High of $201.91.
  • On 11/12/2021, TF sold 55 shares @$171.62/share for $9,439.10.
  • On 8/3/2022, TF bought 89 shares @$105.66/share for $9,403.74.
  • On 9/21/2022, TF sold 89 shares @$106.22 for $9,453.58.
  • On 12/16/2022, DIS reached Low of 90.10.
  • On 1/21/2023, TF bought 91 shares @$103.62/share for 9,429.42.
  • ON 3/9/2023, TF sold 91 shares @$96.22 for $8,756.02.

Current Status

BH holds 43 shares valued at $4,298.71.

TF sold 91 shares and holds $8,756.02 in cash anticipating the next Buy opportunity. TF still desires to have DIS in the portfolio for the long term.


TF owns 48 more shares and has $4,457.31 more capital (aka Wealth) than BH.  TF took the opportunity the Market provided to grow Wealth because a risk management strategy was put in place.

You might actually call it a Wealth Management Strategy!

Remember: Ride Your Winners; Cut Your Losses!

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