We're trimming our position in an outperforming stock we've battled for ages
Shortly after the opening bell, we will be selling 200 shares of Disney at roughly $121.90. Following the trade, Jim Cramer's Charitable Trust will own 900 shares of DIS, decreasing its weighting to about 3% from 3.75%. We're scaling back our large Disney position following the stock's strong rebound above $120 a share and its outperformance this year. Shares are up about 9% in 2025, roughly doubling the S & P 500's return of about 4.5%. The gains haven't been easy here. CEO Bob Iger's turnaround plan required a lot of patience, and he's done a great job restoring the company's credibility with Wall Street. The same goes for Hugh Johnston, who took over as CFO in late 2023. Since this announcement, Disney shares have gained about 45%. That's only a little better than the S & P 500's gain of about 41%, but it ended the long drag the stock had on our portfolio's broader returns. On our Monthly Meeting this past Wednesday, Jim signaled that a Disney trim was coming. "We bought so much Disney when everyone hated it but now we have to figure out how to peel some off even as we like it. What a luxury because I think that last quarter was the beginning of a good streak," he said. "But discipline trumps conviction, as I never tire of saying. We battled Disney and we won. In this business you don't take a bow. You take something off the table." Although we are also downgrading our rating to a hold-equivalent 2 rating , we don't think the Disney turnaround is over yet. The company remains disciplined on costs, direct-to-consumer profitability is improving, the box office has shown signs of recovery (despite some misses), and the experiences segment continues to deliver consistent growth. From this sale, we will realize a disappointing loss of about 17% on stock purchased in late 2021 and 2022. However, we have a solid average gain in our total position thanks to our consistent buying under $110 over the past few years. (Jim Cramer's Charitable Trust is long DIS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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