It was a magical year for the House of Mouse. Not only was Disney (Fortune 500) the king of the big screen thanks to The Avengers and Pixar's Brave, its stock was one of the Dow's top performers. ,
The latest buzz: After a huge run, old-media stocks like Disney may be due for a breather.
What to do: Ignore conventional wisdom and buy.
Yes, the stock trades at 14 times fiscal 2013 earnings, so it's not dirt cheap. But Michael Cuggino, manager of the Permanent Portfolio, says that's reasonable, given Disney's strong profit and dividend growth (it upped its payout 25% in 2012).
The media giant should also keep seeing steady revenue growth beyond movies. This includes Disney's consumer products division, which sells licensed merchandise through the company's retail stores and other channels. The unit was more profitable than Disney's studio last year. Another source of growth: cable networks, led by ESPN -- one of the most valuable brands in all media.
As for movies, Disney bought Lucasfilm and the rights to Star Wars for $4 billion.
Worried the company overpaid? Ted Parrish, co-manager of the Henssler Equity Fund, says you shouldn't underestimate how many ways Disney can milk this franchise through its studio, theme parks, and merchandise.
In the topsy-turvy market of the past five years, these managers led their funds to the best performances. Here's what they're bullish on now.