Would you rather have Disney stock or DVC points?

[Ben E N]

I bought into DVC just over a year ago, and already addonitis is hitting me. My wife and I have two younger children, 3 and 5 years old, and her parents are moving to Florida, so I know we will be taking trips there at least annually for the next 10-15 years.
I presently have just over $5000 in Disney stock just sitting around not doing much at all. That just so happens to be just enough to purchase 25 more points at our home resort. I am assuming the moment that I sell the stock and buy DVC, the value of it will sky rocket, and if I sit on the stock, it will stagnate and the price of DVC will go up.
Without trying to predict the future, which would you rather have? Any feedback would be appreciated.

 

[bwvBound]

Um, both ... but frankly I've been selling my DIS lately. Finally recovered from my May 2015 purchase and sold all LONG shares.

That said ... I don't know what I'd do in your position. If it helps any, I'm glad for the 3 DVC purchases I made between 2004-2007. I'm not buying "now" but glad I did when I struggled with choices similar to yours now. (All my "add-ons" were fairly close to the original purchase as your situation now.)

 

[Networth]

Stock, I am curious to see what Galaxies Edge, 50th anniversary, cuts at ESPN, the streaming service, and the recent purchase of Fox (once it passes regulators) does to stock price in the next few years. That said this is ignoring emotional and family memories, if you think the 25 points will be a positive impact in that realm I would vote the points hands down.

As long as money is stable.

Money < Memories

Any day of the week.

 

[kniquy]

I voted for points, but you could actually buy more points if you bought resale -- so that $5000 could go much further depending up on what resort you are looking to buy. But it is likely near impossible to find a small contract that isn't already pending.

 

[LYSE]

If your poll was a choice as in I don't have either right now but I could have one it would be the stock hands down.

Your basically saying the points are worth $200 each, I bought my loaded poly contract at Under 145 per point AFTER (135 before) closing and all fees including maintenance .. so clearly the stock is worth more.

 

[Ben E N]

Um, both ... but frankly I've been selling my DIS lately. Finally recovered from my May 2015 purchase and sold all LONG shares.

Ha. Me too. But unfortunately the Disney stock is low on the totem pole. It would probably actually be about $3000 of Disney stock and $2000 or others, but I have no intention of touching better investments such as Berkshire Hathaway or Vanguard Index Funds. I'm in similar shape as you where my Disney holdings have grown at essential bank account rates, with no extreme sign of showing any potential for growth, outside of their theme park division. Of course, the better their theme parks do, the more expensive DVC buy in gets...

 

[Ben E N]

I voted for points, but you could actually buy more points if you bought resale -- so that $5000 could go much further depending up on what resort you are looking to buy. But it is likely near impossible to find a small contract that isn't already pending.

If your poll was a choice as in I don't have either right now but I could have one it would be the stock hands down.

Your basically saying the points are worth $200 each, I bought my loaded poly contract at Under 145 per point AFTER (135 before) closing and all fees including maintenance .. so clearly the stock is worth more.

It would be a BLT 25 point contract. Yeah, $191 is pretty darn high per point, but the resale market is real high as well, with smaller contracts asking $160+, and coming with more points and a higher buy in than I am interested in, as well as not matching the correct use month.

In a perfect world, I would build a time machine and go back and buy a larger resale contract from the get go, which is what I advise others to do based on my experience, but that's not really an option for me.

 

[Wakey]

I voted stock, because DVC isn't worth $200 a point.

If your question had been would you rather have 50 points SSR (or similar) resale, or $5000 Disney stock, I'd have picked SSR every time.

 

[LYSE]

It would be a BLT 25 point contract. Yeah, $191 is pretty darn high per point, but the resale market is real high as well, with smaller contracts asking $160+, and coming with more points and a higher buy in than I am interested in, as well as not matching the correct use month.

In a perfect world, I would build a time machine and go back and buy a larger resale contract from the get go, which is what I advise others to do based on my experience, but that's not really an option for me.

From the ROFR thread:

BLT:

ajjonesehc---$140-$23349-160-BLT-Mar-0/17, 160/18, 160/19, 160/20-Seller pays closing- sent 6/21, passed 7/6

ajjonesehc---$140-$23349-160-BLT-Mar-0/17, 160/18, 160/19, 160/20-Seller pays closing- sent 6/21, passed 7/6

dad_at_blt---$140-$24622-165-BLT-Feb-0/17, 148/18, 165/19, 165/20- sent 6/18, passed 7/6

BlueRibbon---$147-$19370-125-BLT-Dec-0/17, 125/18, 125/19- sent 6/28, passed 7/12

kmc8826---$138-$23727-160-BLT-Oct-0/16, 0/17, 160/18, 160/19- sent 6/28, passed 7/18

AmandaK---$130-$17721-125-BLT-Jun-0/17, 125/18, 125/19, 125/20- sent 7/13, passed 8/1

I know smaller contracts ask for higher prices pp, but that's all the more reason NOT to buy it and just keep the stock.

 

[Ben E N]

From the ROFR thread:


I know smaller contracts ask for higher prices pp, but that's all the more reason NOT to buy it and just keep the stock.

I have investment money set up into three specific accounts. 1. Retirement - Don't touch it unless my house literally burns down, or something along those lines. 2. Solid investments - I'll need that money at some point, so don't touch it unless it's really important. And then 3. "Fun Money". I had money lying around, saw a stock I liked, and bought it. Disney was one of these. The more it sits there, though, the more the money just wastes away, not growing at all. At the same time, the price of DVC is rising pretty rapidly. As your ROFR thread shows, BLT is really skyrocketing. I paid $121 per point for a 160 point contract just a year ago. Within a year or two, $191 per point could not seem all that high. The 25 point contract is more easily movable than a 125 point one would be as well.
Obviously I would love to just buy a 300 point contract at $100 per point, but I don't have $30,000 lying around in that third bucket of funds, which is why a 25 point contract would make the most sense unless some perfect 40 point contract miraculously showed up.

As for not buying, I do appreciate that feedback. I have read that no matter how much money people have, they always feel that they would be happier with just 20% more. I have the feeling that DVC points are like that, and once 25 more get added on, another 25-50 would sound just perfect. Even with Disney stock flatlining, money is money and I am sure I would love spending it on something else as well.

 

[Ben E N]

I voted stock, because DVC isn't worth $200 a point.

If your question had been would you rather have 50 points SSR (or similar) resale, or $5000 Disney stock, I'd have picked SSR every time.

Good call. This listing would have been perfect.
https://www.fidelityresales.com/disneys-saratoga-springs-resort/unit/5003227

 

[CarolMN]

I'd probably sell the stock and buy a diversified mutual fund, but we have the right amount of points and are retired.

Odd choice for me. Probably not common to be choosing between those two options, lol.

Why did you buy the stock? Retirement? Down payment for a future home? College? For a temporary place to park discretionary funds? Does the goal still apply? Does the investment still make sense for that goal? Only you can answer for your family.

 

[Bing Showei]

Hmmm... I was looking for choice c. cash... but don’t see it anywhere.

[goes to recheck options]

 

[Ben E N]

I'd probably sell the stock and buy a diversified mutual fund, but we have the right amount of points and are retired.

Odd choice for me. Probably not common to be choosing between those two options, lol.

Why did you buy the stock? Retirement? Down payment for a future home? College? For a temporary place to park discretionary funds? Does the goal still apply? Does the investment still make sense for that goal? Only you can answer for your family.

Parking place for discretionary funds. Glad I have accounts like these, as it was what allowed me to buy into DVC in the first place. That Disney stock holding is just the next layer of "peel offable" funds.

Looking for a small OKW or SSR contract for under $6000 may be the best move. There is more value per point there, and the real interest in buying more DVC points is my wife and I realized how much we like the different resorts and that we want to try them all at one point or another.

 

[LYSE]

I have investment money set up into three specific accounts. 1. Retirement - Don't touch it unless my house literally burns down, or something along those lines. 2. Solid investments - I'll need that money at some point, so don't touch it unless it's really important. And then 3. "Fun Money". I had money lying around, saw a stock I liked, and bought it. Disney was one of these. The more it sits there, though, the more the money just wastes away, not growing at all. At the same time, the price of DVC is rising pretty rapidly. As your ROFR thread shows, BLT is really skyrocketing. I paid $121 per point for a 160 point contract just a year ago. Within a year or two, $191 per point could not seem all that high. The 25 point contract is more easily movable than a 125 point one would be as well.
Obviously I would love to just buy a 300 point contract at $100 per point, but I don't have $30,000 lying around in that third bucket of funds, which is why a 25 point contract would make the most sense unless some perfect 40 point contract miraculously showed up.

As for not buying, I do appreciate that feedback. I have read that no matter how much money people have, they always feel that they would be happier with just 20% more. I have the feeling that DVC points are like that, and once 25 more get added on, another 25-50 would sound just perfect. Even with Disney stock flatlining, money is money and I am sure I would love spending it on something else as well.

I hear ya, I'm just always tied up in the per point cost and personally would not pay that much more just because I get to buy a smaller amount.

 

[Ben E N]

Hmmm... I was looking for choice c. cash... but don’t see it anywhere.

[goes to recheck options]

You really think I should just dump the Disney stock? That thought crossed my mind, but I figured it was a blue chip enough of a stock with growth potential that I could leave it there relatively risk free until the money is needed.

 

[Bing Showei]

You really think I should just dump the Disney stock? That thought crossed my mind, but I figured it was a blue chip enough of a stock with growth potential that I could leave it there relatively risk free until the money is needed.

Hahaha! I’ve been bear for the better part of the past year and a half and had I given in to my bear tendencies, pulling out of my S&P holdings, I would’ve missed out on about 18% growth in that time. You don’t want financial advice from me (or anyone on a public forum).

But since you asked, I’m with CarolMN. I don’t do individual stocks anymore as I’ve held too many bad ones for too long, and in all my holdings, I have never beat the S&P over any multi-year stretch; as such I wouldn’t hold on to DIS. But I wouldn’t buy DVC with that money either.

Super helpful advice, I know. But you get what you pay for, BEN!

 

[Ben E N]

I'd probably sell the stock and buy a diversified mutual fund, but we have the right amount of points and are retired.

Odd choice for me. Probably not common to be choosing between those two options, lol.

Why did you buy the stock? Retirement? Down payment for a future home? College? For a temporary place to park discretionary funds? Does the goal still apply? Does the investment still make sense for that goal? Only you can answer for your family.

This really may be the best bet. I have been hanging onto that Disney stock for what feels like too long, waiting for it to take off and it never does. All along other ones have been growing like crazy and that money has been sitting and watching. I've enjoyed owning Disney stock because when they make a maddening move, I can at least say "it's in the interest of making me more money", even though it hasn't done that. I doubt I would regret just throwing that money into a mutual fund.

 

[Ben E N]

Hahaha! I’ve been bear for the better part of the past year and a half and had I given in to my bear tendencies, pulling out of my S&P holdings, I would’ve missed out on about 18% growth in that time. You don’t want financial advice from me (or anyone on a public forum).

But since you asked, I’m with CarolMN. I don’t do individual stocks anymore as I’ve held too many bad ones for too long, and in all my holdings, I have never beat the S&P over any multi-year stretch; as such I wouldn’t hold on to DIS. But I wouldn’t buy DVC with that money either.

Super helpful advice, I know. But you get what you pay for, BEN!

I wish I could go back 6 years or so and slap myself. At least I was smart enough to put 90% of my money into safe funds, but thought I would have "fun" with the other 10%. Disney was one of my better performers... Now that I'm older, I know what the phrase "you get wiser as you get older" means.

 

[Jelly563]

$5k in stock pays you dividends
Points cost you m. fees