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Tuesday, October 07, 2008
Andy Louis-Charles :: Townhall.com Columnist
Disney: When You Wish Upon A Stock
by Andy Louis-Charles
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7. Intel (Nasdaq: INTC)

Computer Hardware

$31B

$136B

8. McDonald's (NYSE: MCD)

Restaurants

$29B

$74B

9. Disney

Media

$29B

$60B

10. Mercedes

Automotive

$24B

$61B

Source: Interbrand data. Market cap data from Yahoo! Finance.

It was quite understandable that Coca-Cola topped the list. Established in 1886, this beverage juggernaut owns four of the world's top five carbonated brands. Regardless of one's soft drink preference, the company has undeniably sold the world a Coke, delivering 1.5 billion moments of refreshment daily.

However, when Interbrand determined that Microsoft and IBM won the second and third spots, I took exception. Beyond its shareholders and employees, I doubt anyone would shed a tear if the Microsoft monopoly were unseated by cloud computing. As for IBM, does anyone really look back longingly on the days of punch cards?

Amazingly, I could only find a handful of companies on the global brands list with the chops to both invoke childhood memories and maintain lifelong relevance with their customers. However recognizable these monster brands may be, few possess the beauty of an emotional moat.

The circle of life
Imagine how long a Disney memory lasts, and the subsequent lifetime value of a delighted customer. With life expectancies hovering around 78 years, a person may have 70 years or more to be enchanted by Disney; first as an awestruck child, then as a parent seeking to relive the experience, and finally as a grandparent, looking to simply spoil their grandchildren rotten.

And you don't have to enter the theme parks to have experienced the world of Disney. Visit the home of most young parents, and you'll find Nemo perpetually situated in the DVD player, or perhaps you'll trip over a stuffed Simba on your way to the bathroom. Whether you're watching Monday Night Football on ESPN with friends, High School Musical with the teenagers, or taking the wife out to see Johnny Depp in Pirates of the Caribbean, you've just been touched by the magic of Disney.

So don't just wish upon your stocks. Make sure you take into account the company's emotional moat, and whether its products will continue to elicit fond memories 70 years from now. Because when you invest in unforgettable stocks, your financial dreams really do come true.

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About The Author

Andy Louis-Charles is a Motley Fool contributor.

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