Karen Doyle
3 min read
Recent announcements of sweeping tariffs have wreaked havoc on the stock market, wiping out trillions in market value of the many companies that rely on parts, materials and finished goods that are made overseas. Blue chip stocks like Disney are not immune from the downturn, but seasoned investors know that steep drops in the market can represent a buying opportunity.
Trending Now: 3 Reasons Disney World Has Become Unaffordable for the Middle Class
For You: Here’s the Minimum Salary Required To Be Considered Upper Class in 2025
What are the experts saying about ‘buying the dip’ the tariff announcements have created? Is Disney stock a bargain? Below is what you need to know.
Also find out if Apple or Disney is the best stock to buy.
Disney is the world’s biggest entertainment company and is a major player in categories like movies, television, theme parks, cruises and more. Fears of a recession had Disney down nearly 10% in the big ‘Liberation Day’ sell-off, according to The Guardian. Virtually all of Disney’s businesses trade in discretionary products and services, so a recession will likely hit the House of Mouse hard.
See Next: I’m a Self-Made Millionaire: 5 Stocks You Shouldn’t Sell
Bob Iger, Walt Disney Company CEO, showed up unannounced at the daily editorial meeting of ABC News, which is owned by Disney, on Thursday, April 3. According to Status, Iger told the meeting of journalists that steel tariffs will drive up the company’s costs for building cruise ships, although he didn’t specify the amount of the increase. He also said that it would be impossible to quickly move overseas manufacturing to the U.S., even if the required factories are already here, as the company would need to hire and train skilled workers.
Legendary investor Warren Buffett is famous for his buy-and-hold strategy, which would indicate that buying the dip is a bad idea. But Buffett also said to “be fearful when others are greedy and greedy when others are fearful,” which would seem to support the idea of entering a market that many are fleeing. So, which is it?
While Buffett has not spoken out about the current dip in particular, investors watch his moves like a hawk. James Foord of Seeking Alpha notes that Berkshire Hathaway was sitting on a lot of cash at the beginning of the year and Buffett may have been waiting for an opportunity like this to buy. But Buffett still lives by his mantra of buying what you know and when he does buy in a dip, he will often increase his existing holdings rather than buy a new position he doesn’t already own.
