Middle Class Millionaire is doing a great series on investing based on which companies might benefit from demographics in North America going forward. Responders, including myself, suggested several stocks to him to preview including some of my favourites like Walgreens (WAG), Scotts Miracle Gro (SMG), and IGM Financial (IGM).
I also suggested Disney (DIS) to him and explained my rationale for the demographic play to him this way:
My thesis on Disney is that if there is one thing that boomers over 55 value, it’s their Grandkids. My parents were absolutely ecstatic when they found out they were going to be Grandparents. Kids today have more people, and wealthier people willing to purchase toys, movies, trips, etc. for them. Also, because today’s society is based more on dual income families they tend to buy their kids affection with Disney products, and have more income and wherewithal to take a vacation to Disney Resorts. Disney has become somewhat of a status symbol for the middle class. I once heard a Father say ‘my goal is to earn enough money this year to take my family to Disneyland’.