Senior analyst Anand Chokkavelu, CFA, marvels at sports broadcaster ESPN's moat.
When basketball player LeBron James wanted to do a one-hour special to announce his free agent intentions, he went to ESPN. In the sporting world, is there really any other choice?
Not really. Between its eponymous cable channels, ESPN.com, its ESPN3 Web offering, and its magazine, ESPN has a moat investors drool over.
But here's the problem. ESPN is just one part of the Disney
Other tasty brands like Zappos, Maggiano's Italian restaurants, and The Wall Street Journal share a similar problem. They are just small pieces of Amazon.com
Zappos, Maggiano's, and the Journal can't move the needle much at their mother companies. But this actually isn't the case at ESPN.
Disney is also known for Mickey Mouse, its theme parks, its movie studios (including Pixar and Marvel), and its ownership of ABC, but ESPN and Disney's other cable channels made up a whopping 64% of last year's operating profit.
That's pretty darn impressive. So if you believe in ESPN, Disney just may be a stock for you.
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