A Billionaire investor has a message for Disney shareholders, and it’s not a good one. In a recent meeting with the Daily Journal, investor Charlie Munger shared that he doesn’t see Disney being able to continue competing the way it used to. Walt Disney Company CEO Bob Iger was also on the call and, in a way, agreed with Munger.
Charlie Munger Recalls When Disney “Once Owned the World”
Charlie Munger is an American businessman and investor who has been a dominate force in the world of business for many years. He is well known for being the long time partner and “right-hand man” to Warren Buffet. At 99 years of age, Munger is worth an impressive $2.3 billion. He currently works as the vice chairman of Berkshire Hathaway.
During this years Daily Journal annual meeting, Munger was interviewed and was asked all kinds of questions about different businesses. When the discussion of Disney came up, Munger didn’t shy away from sharing his thoughts on the company. He has a clear message for shareholders; Disney is no long the dominant force that it once was. Munger believes that the industries the Walt Disney Company exists in today are much tougher than they were years ago. The pandemic changed a lot for the company, and Munger isn’t sure that CEO Bob Iger will be able to fully recover Disney.
Munger said, “Practically every business that Disney has, has gotten tougher than it used to be. Again, welcome to human life. Think about Disney — once owned the world. Lion King was running a long run in the Theater District of New York. They went from triumph to triumph, marching, marching, marching. All of a sudden, practically every front, it’s more difficult. … How would you like running the sports, ESPN, now at Disney compared to its heyday? It’s going to be way harder for them.”
Is Iger’s Strategy Enough?
In the recent quarterly earnings call, Disney CEO Bob Iger agreed to many of the points made by Munger. He agnoledged that Disney has much more competition now than before, but unlike Munger, Iger seems confident that he can pull through for the company once again.
Iger’s strategy will focus on saving money and making sure they “reassess all markets.” Iger has pushed the company to new heights in the past, and now more than ever Disney will need Igers magic to help them suceed once again.