Earlier today Disney (NYSE:DIS) announced that it will start buying back up to $8 billion worth of its own shares beginning in fiscal year 2014.  According to Consumer Goods Analyst Michael Finarelli, that's about 6%-7% of Disney's current market cap, which is a big enough percentage for shareholder's to react positively to the news; by market close Disney was up around 2.5%.

Michael thinks that this is a good deal for long term investors. According to him Disney isn't too expensive right now, has a strong brand, and has tremendous earnings value, which means that investors will see a some value from the company reclaiming its shares.

Fool contributor Mark Reeth has no position in any stocks mentioned. Michael Finarelli has no position in any stocks mentioned. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.