On Friday, we commented that as tempting as it was to step into those stocks most at risk of the omicron variant — the ones that need cross-border activity and are tied to travel and entertainment — we simply did not have enough information and felt it better to wait and see if we would get better prices Monday. With that being the case this morning, we are ready to take advantage.
While the omicron variant has certainly added a headwind to the experiential side of Disney’s operations (think parks, cruises and theatrical releases), we remain long-term bullish and see an opportunity to reduce our overall cost basis in a position that we have purposely kept small — precisely because when we initiated it, we acknowledged that we were not out of the Covid woods. Even with this purchase, the position will be small enough to allow for further buys should the pressure persist.
