Better investment DVC or Disney stock?

FireflyTrance

DIS Veteran
Joined
Feb 5, 2011
Neither is a particularly good investment. I would say if your goal is investing, just buy a mutual fund that matches the S&P 500 and call it a day.
I personally don't think it's smart to put too much money in any one individual stock. With all the resale restrictions that DVC is adding, I wouldn't count on making your money back if you sell.
 

mentos

Minty fresh happy haunts
Joined
Aug 19, 2017
Neither is a particularly good investment. I would say if your goal is investing, just buy a mutual fund that matches the S&P 500 and call it a day.
Don't forget a completion fund to catch the remainder of the total market!

...actually if someone is relying on disboards for investment advice, perhaps an S&P fund one and done is the order of the day.
 

CanadaDisney05

DIS Veteran
Joined
Mar 20, 2017
The problem is people keep using the word "investment" wrong. Investing is not synonymous with "capital appreciation".

Buying DVC for X dollars today with the hope to sell it in 10 years for X + Y is capital appreciation.
Investing is spending money with the intention of receiving positive financial returns. Capital appreciation is a type of investment, but it is not the only type.

Think of a manufacturing company. They invest 1 million dollars in a piece of machinery that builds some sort of gadget. The investment is not that they hope to sell the machine for a higher price in 10 years. The investment is that they hope the machine will produce enough gadgets that they can sell for more than the cost of the machine itself.

DVC is the same thing. The investment in DVC is not in hoping that the contract appreciates in price. If it does, that's a bonus. The investment in DVC is that it produces a cost savings vs cash prices for the same resort.

An investment in DIS stock is the hopeful capital appreciation.

An investment in an ETF or Mutual Fund is capital appreciation.
 

deedubb

Always Grumpy, except when at Disney!
Joined
Feb 12, 2017
I own both. One gives me a lot more joy than the other, and that's really all I care about. I'm sure you can figure out which is which.
 

Brianstl

DIS Veteran
Joined
Sep 8, 2019
At last look DIS was down 22% from where it closed at 3 months ago. That is still up over 5% year over year.
 

kboo

DIS Veteran
Joined
Mar 10, 2014
At last look DIS was down 22% from where it closed at 3 months ago.
Ugh. That is so painful. Afraid to look at my actual investments, but I'm pretty sure that in the past 5 days they've lost, in total, more than the total purchase price of my RIV direct points.
 

Brianstl

DIS Veteran
Joined
Sep 8, 2019
Ugh. That is so painful. Afraid to look at my actual investments, but I'm pretty sure that in the past 5 days they've lost, in total, more than the total purchase price of my RIV direct points.
Right now the S&P is officially in correction territory down 10.6% from it's high. The good new is it is still up almost 9% from a year ago.
 

Deb & Bill

DVC-Trivia Contest, Apr-2006: Honorable Mention
Joined
Mar 20, 2000
That thought popped into mind when it hit me how much Im spending to purchase DVC. I am clueless when it comes to day trading and buying stocks and let my expert retirement lady handle all of that stock stuff. And if I asked her id bet dollars to donuts that shed say buy the stocks.

The way I see it I will save thousands on DW trips buying DVC but I cant help but wonder about the stocks.
No, you will not save thousands on DW trips buying DVC. You will end up spending a lot more than you planned.
 

arrrroooooo

Earning My Ears
Joined
Jun 3, 2019
Ugh. That is so painful. Afraid to look at my actual investments, but I'm pretty sure that in the past 5 days they've lost, in total, more than the total purchase price of my RIV direct points.
It's a great time to be happy about owning DVC. Right now, my DVC "investment" is dramatically outperforming the market :)
 

zavandor

DIS Veteran
Joined
Jul 22, 2011
If US parks will be forced to close because of the coronavirus, the DIS stock will drop even more. Quarantine of international travelers will cause problems to the travel industry as well, if introduced.
I guess one should bet if it will (wait and buy later) or won't (buy now) happen.
 

wishicouldgomoreofte

Mouseketeer
Joined
Oct 14, 2007
A timeshare is not an investment. Stock is.

A timeshare is only a vehicle via which you pay cash up front to potentially save on accommodations in the future. And those accommodations are higher-end, so likely fail to represent savings over staying off-site or at a Value resort, and have a host of accompanying expenses (travel, food, tickets, etc.).

DVC is not an investment.
DVC is not an investment.
 

RanDIZ

Mouseketeer
Joined
Dec 22, 2019
DVC has already depreciated about 10% the day you buy it if you factor in commission needed to sell it. Then depending on where the market is for resale, it could be even more. As far as the stock, it’s down 15% for the week. Just a minor blip on the radar. Disney’s got its hand in everything. The way people love Disney in the US, I don’t see it affecting park attendance. And Disney+ could see a boost from overreacting people staying home that can now binge watch. Long term, I’m taking stocks all day! Look at this 20 yr return on $10k investment.
477612
 

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