Is The Walt Disney Company (DIS) the Best Kid-Friendly Stock to Buy According to Billionaires?

We recently published a list of 10 Best Kid-Friendly Stocks to Buy According to Billionaires. In this article, we are going to take a look at where The Walt Disney Company (NYSE:DIS) stands against other best kid-friendly stocks to buy according to billionaires.

The market has been undergoing a volatile spell these past few days. Economic data from the Federal Reserve Bank of New York indicates a pattern in which stock markets reacted negatively to President Trump’s tariff announcements against China in 2018 and 2019. Current market behaviour in 2025 suggests a similar, potentially more widespread, response to new trade policies. Markets have been underperforming for the first quarter of 2025, considering that the wider market fell by over 10% and the tech-heavy NASDAQ plummeted by more than 15%. The Cboe Volatility Index (aka VIX) is currently at 52.33%, compared to 17.93% at the start of the year.

The year 2025 began with the revelation of DeepSeek, an AI program developed in China, which rivalled AI technology in the US Tech sector. DeepSeek requires lesser processing power, which means lower costs and improved results for users. The market immediately saw investors take on a bullish outlook, short-selling stocks before any further impact on their portfolios.

In the second month of 2025, the US government’s first round of Tariffs was aimed directly at China in an effort to curb the impact of DeepSeek on the United States’ tech industry. In March, President Trump announced a rate of 54% tariff on Chinese goods, while China retaliated with 34% tariffs on US goods and services.

DW (Deutsche Welle) reported that President Trump approved 20% tariffs on European goods & services in the latest round of “Trump Tariffs”. Foreign investors, specifically from European countries, were quick to divest their portfolios. The US economy is considered to be entering “continuous stagflation”, which is defined as continued inflation with very low growth and high unemployment.

This scenario has prompted investors to reconsider their future investment strategies. Several reports point out a growing trend among parents who are actively setting aside funds to safeguard their children’s financial future. Survey results of 2000 UK investors over 18 years of age, published by the international adviser, stated that 44% of parents were stressed about making the right investment decisions regarding their children. 35% worry that they have not saved sufficiently to ensure their children’s financial future. In an interview with CNBC, Stacy Francis, the President & CEO of Francis Financials in New York, spoke on how parents can educate their children on investing:

“Make sure that money can be talked about, that there’s no taboos…so that your children are learning those really good financial literacy skills that they need to set themselves up for success for the rest of their life.”

Investing in the markets for your children’s future has the advantage of time. In a report by MorningStar, investments in stocks have the added benefit of compounding return, which means the earlier you start, the more time your investments have to grow exponentially. CNBC reported on billionaire investor Mark Cuban and how he made billions from his first few million with a long-term view on his investments.

Our Methodology:

To compile this list, we thoroughly reviewed reputable sources and gathered the stocks they collectively favored. These stocks have a long-standing history of performance, with strong balance sheets and sound financials. Then, we used Insider Monkey’s proprietary database of billionaire stock holdings to arrive at our list of 10 best kid-friendly stocks to buy according to billionaires as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks. Billionaires are founders or managers of some of the world’s leading hedge funds and companies.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

The Walt Disney Company (NYSE:DIS)

No. of Billionaires: 19

Value of total Investment by Billionaires: $3.19 billion

The Walt Disney Company (NYSE:DIS) is a global entertainment powerhouse with brands such as ABC, Disney, FX, Fox, and National Geographic, producing original content through studios like Lucasfilm, Marvel, Pixar, and Walt Disney Pictures. It specializes in direct-to-consumer streaming services like Disney+, Disney+ Hotstar, Hulu, and ESPN. It also operates parks and resorts worldwide, including Walt Disney World, Disneyland, and international locations, alongside Disney Cruise Line and Vacation Club.

The Walt Disney Company (NYSE:DIS) has a proven history as not just an entertainment powerhouse but a dynamic and competitive player in the industry. The company has adapted from its humble beginnings of black and white images from 1920 to becoming an entertainment business that incorporates AI in its creative process. Bears of the stock highlight headwinds that will impact the company’s performance, notably, theatrical films will never return to levels before COVID-19, high production budgets are in the hundreds of millions, volume of content is high, which is met with a shrinking audience.

In the first quarter of 2025, The Walt Disney Company (NYSE:DIS) announced a revenue of $24.69 billion, beating estimates by $143.28 million, and an EPS of $1.76 compared to estimates of $1.43. Analysts bullish on the stock recognize these factors and continue to support the price of the stock. The company’s brands are synonymous with homes across the globe, not to mention its acquisition of other brands with strong fan followings, such as Lucasfilm in 2012.

Overall, DIS ranks 5th on our list of best kid-friendly stocks to buy according to billionaires. While we acknowledge the potential of DIS, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DIS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.