One of tech’s top growth stocks over the past decades is changing its colors, and that’s alright. Apple, which had growth approaching 30% over the past five years is now forecasting that their growth for the coming five years will be a much more modest 8.7%, making this once high flying growth stock into a more conservative blue chip value stock with a modest growth rate and healthy dividend. How can we be sure Apple has morphed into a value stock? Why the man that some call the greatest value investor of all time, Warren Buffet, is buying Apple shares at a pace that increased his stake in the company by 55% in the second quarter of 2016. This comes after he publically stated in 2012 that he would never buy a volatile high growth stock like Apple. With the increase, Warren Buffet’s Berkshire Hathaway owns 15.23 million shares of Apple as of June 30, 2016. That’s a stake worth $1.46 billion. And that’s not all.
After reporting the latest revenue and earnings shares of Disney promptly sold off, despite the fact that they were better than expected. In fact, Disney’s stock hasn’t had a great year as it is down 7.84% since the beginning of the year and down 9.63% over the past 52 weeks, even though the S&P 500 is up 6.85% since the beginning of the year. And yet analysts remain somewhat bullish on the stock, and earnings show growth, aside from the drop in ESPN subscribers, which is exactly what has been plaguing the stock over the past year as consumers unplug from cable channels and switch to streaming services instead. Disney may have found the solution to that problem too though as we will see later, and the rest of 2016 could be much better if investors buy into the proposed solution to the drop in cable subscriptions.