Legendary investor Warren Buffett once said successful investing often comes from “stepping over one-foot hurdles” rather than attempting impossible leaps. That philosophy sits at the heart of a recent investment analysis by David Bahnsen, who argues that durable cash flow and manageable risk matter more than chasing flashy growth stories.
Writing in his Dividend Café newsletter, Bahnsen examined the landmark 2019 deal in which The Walt Disney Company acquired major entertainment assets from 21st Century Fox for $71.3 billion.
The transaction, one of the largest in modern media history, saw Disney acquire Fox’s film and television studios after a bidding war with Comcast. Meanwhile, Fox’s news and sports businesses were separated into a standalone entity, Fox Corporation, which remained under the control of Rupert Murdoch and his family.
Bahnsen said the deal highlights a key divide in modern investing. Many companies today, he argued, rely on “long-duration” strategies requiring heavy capital investment and years before meaningful returns emerge. Such businesses may generate excitement but can expose investors to higher risks and uncertain value creation.
By contrast, dividend growth investors tend to favour companies with strong and repeatable free cash flow generation, lower capital intensity and business models capable of producing consistent shareholder returns over time.
The analysis was inspired by recent interest in the Murdoch business empire, including the Netflix documentary Dynasty: The Murdochs and journalist Gabriel Sherman’s book Bonfire of the Murdochs.
According to Bahnsen, the Disney-Fox transaction offers more than media drama — it provides a broader lesson on how investors should think about risk, durability and long-term wealth creation.
