How's it going, everyone? Today we're discussing a hot topic in the entertainment industry: How Disney's Social Initiatives are Backfiring.
The Funds Behind Disney
When I started fund launch, I thought people should want to start funds.
Now, I realize that people need to start funds. Why?
Vanguard, State Street, and BlackRock control the earth right now.
You might think that's a hyperbole, but it's not.
The New York Times reported that each firm manages the following...
- Vanguard - $8 trillion
- State Street - $4 trillion
- BlackRock - $10 trillion
The sum of the three constitutes more than 50% of the value of all shares in the S&P 500!
These 3 companies are more than half of the S&P 500!
Shareholder Influence
They launch ETFs and you and I buy their shares with our 401Ks.
With that money, they buy positions in all these Fortune 500 companies.
With majority positions in companies like Disney, Bud Light, and Target, they have the influence to push whatever initiative they want.
Disney, Bud Light, and Target have all pushed unpopular initiatives on their customers, which ended up killing their sales and business.
However, none of these companies have apologized for what they did because their largest shareholder was telling them what to do, and the CEOs were just along for the ride.
From April 2023 to yesterday, here is the market growth for these companies...
- Dow Jones = +8.9% (the economy has been doing okay)
- Bud Light = -12.3% (but these companies have not)
- Target = -15.9%
- Disney = -8.1%
Disney, peak to bottom, is down 56% - that means they've lost $209 billion in market cap!
Disney is thinking, "We're pissing off our customers, but if we don't do what "BlackRock" says, then they're gonna sell all their shares and we'll lose business overnight."
Retail Investors
Now I want to talk about retail investors...
In 2010, about 10% of US equity trading volume was retail investors.
In 2014, it was about 14%.
When Covid hit in 202, it jumped to 20%.
Wall Street is realizing that the public is buying and selling a decent amount of equities.
My point is that we need to start funds. We don't need 3, we need 10,000.
When this happens, we destroy the chances of these big firms monopolizing the market, and it turns into a healthy, competitive market.
This way, we decentralize the capital that's sitting in these three big companies.
If you don't think this is urgent enough, realize that these big 3 banks control 40% of shareholder votes in the S&P 500!
Conclusion
This is why and how Disney's social initiatives are backfiring: big banks are influencing them to push political agendas, which turns away customers but keeps shareholders happy.
The solution to keeping these big banks from monopolizing is starting investment funds.
Click here to visit Fund Launch and get help starting your own fund!
Also, click here to watch my YouTube video!
Thanks for stopping by,
Bridger Pennington
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author
No comments:
Post a Comment