Investing & Food

#1

I am not sure if this topic will generate any interest/traffic but here goes. When I first joined HO, I mentioned I was recently laid off–still looking! That happened to me also in 2008 when I found Chowhound. A lot of time on my hands! When I landed my new job in 2008, I vowed two things:

  1. eat better and learn more about food - influenced by CH
  2. invest/save like crazy, so I could feel a bit more financially secure - influenced by life

I have done that and will continue if I am able to find another employment situation.

Given HO is all about food, I was curious what food/beverage or food related stocks did I have in my portfolio? I should say that I invest with a singular goal. To make money and generate a passive income stream from large companies that pay dividends. I am every bit as passionate about investing as I am about food. Here is what I own. The percentage is the annual dividend yield I receive for the investment.

I would love to hear of any food/beverage related public companies you may know about. Most fast-food companies are public and I already know about those.

Non-Alcoholic Beverages
Coca Cola (KO) 3.5%
Pepsi (PEP) 3.2%
Keurig Dr. Pepper (KDP) 2.1%

Food
Flower Foods (FLO) 3.4%
J. M. Smucker Co. (SJM) 3%
Kellogg’s (K) 3.9%

Agriculture
Archer Daniels Midland Co. (ADM) 3.4%

Retail/Grocery
Target (TGT) 3.5%
Williams Sonoma (WSM) 3.1%

Restaurants
Cracker Barrel Restaurants (CBRL) 5.1%

Alcohol
Molson Coors Brewing Co. (TAP) 2.7%

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(Andrea) #2

Does Costco count?

On a related note, I was a little surprised to read this about Kraft Heinz - a $10 billion loss for 2018!

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#3

Yes, Costco counts! COST, yield 1.05%. Been wanting to own forever. It is perpetually overvalued tho. One day, one day.

Yes, Kraft-Heinz made the big investing news this week. They slashed their dividend by 40% along with the loss. Glad I didn’t own it.

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(Jimmy ) #4

That old fat guy from Berkshire Hathaway strikes again. What a bag of shit he is.

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#5

I don’t revere WB like much of the investing world does, but I don’t think he made the decision to cut the dividend, nor is he running company. Last I saw, he owned about 25% of KHC.

Interestingly, on another note, I noticed that several Heinz products were much less expensive than their competitors last time I was in the store so I tried them (yellow mustard & Mayo). Maybe they need to increase prices. Seems like they can command it.

@RedJim, what do you know about WB striking again? I would like to learn?

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(John Hartley) #6

I’ve no specifics to offer, I’m afraid. Looking at your list, I think they are all American companies and it may be an idea to consider a more international portfolio in case of a downturn in your economy. It may also be worth considering a small crowd-funding investment - a new restaurant may have turned into a very successful chain within a few years.

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#7

Thanks John,

Appreciate the feedback. Almost all of these companies are international. Yes, they are USA based, but they sell internationally. They make money inside and outside the USA.

I would love to hear about any new restaurant concept that might go chain. That was what I was kind of hoping for. New leads, I had not thought of.

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(Jimmy ) #8

I apologize to you, Jackie, and to all others for my comments about the Kraft-Heinz difficulties.

My comments were not well thought out. I’m truly sorry for making them here.

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#9

Actually I have pretty heavily invested in pharmaceuticals for the past 7 or 8 years. I have purposely stayed from the food/ dining stocks, as I got burnt about 11 years ago… I have been averaging 5 to 6 % in pharmaceuticals … look at Astra Zeneca…long term

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#10

@PHREDDY

I was hoping to keep this to food and investing since this is a food site. I have over 75 positions in my portfolio but I only listed those food related.

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#11

No worries Jimmy, no offense taken. This is the internet. I interact in many different forums and I have sent out a few zingers in my day.

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(equal opportunity eater in the NC Triangle) #12

My Father was a stock broker and manages an investment company. We haven’t discussed this topic in several years. When I lived in Asheville he became aware of the regional grocery chain Ingles. He was pretty enthusiastic on them for investing. No idea if he still feels that way.

Edit: Spoke to my father. At that time it preformed really well. Then it had some stagnant years. He has no idea how it is looking now.

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#13

@meatn3

Interesting and exactly what I was looking for. I have never heard of this regional market. Stock ticker is IMKTA and it yields 2.1% dividend. Looks like it is in 5 or 6 states in the South.

Grocery is a tough business. I look to my own experience when shopping and perhaps that is why it is tough.

When I was a kid, you basically went to one grocery market to satisfy almost all needs. Not anymore. I don’t consider Vancouver WA a large city at all but I have my pick. Here is my routine.

A) WinCo (private company) - This is where I go for most of my staples
B) Chucks Produce (local private company) - I go here once a week for produce and a few other things.
C) Local Butcher (private company) - I go here for my meat.
D) Local Asian & Mexican grocery (private) - Weekly
E) Fred Meyer (Kroger KR public company) - Every once in a while.

New Seasons, Whole Foods, TJs, about once month maybe. I dont buy much at any.

So, even in my fairly small town, I have lots of option and I use them. I think that is what has put so much pressure on grocery stores.

Anyway, great find, thank you. I appreciate the heads up on IMKTA. I won’t be investing, but I am happy to have learned about another option. I would like very much to settle in the South one day.

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#14

I generally invest in vanguard etf.

I bought mcd stock at 90ish a share maybe 5 years ago and I am kicking myself in the ass for not buying a lot more :confused: I still think it is a good buy today, but who knows. The intl market is what they will excel at imo. Again, it’s a craps shoot but if you look at their 5 year history, it looks like a decent buy today.

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#15

My point was just my experiences were not too good in the “food” sector, nothing more, but would love some good advice!

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#16

I understand. If you notice, I don’t have much food related stuff and that is because I think all aspects are hard. Changing preferences, more competition, buzz words like organic, non-GMO, cage free, etc., have made it difficult for the large companies to adapt.

I do believe they are, and will, but a big company is like a big aircraft carrier. Hard to turn on a dime, especially since they spent years perfecting a process.

I am going to keep looking for gems that are smaller and I will post them here. I actually have one in mind. I don’t know much about it right now but I will post the particulars when I get more info. I don’t think I have had any of their products, but supposed to be “specialty Italian” .

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(Andrea) #17

Grocery Outlet just went public
https://finance.yahoo.com/news/grocery-outlet-jumps-trading-debut-171026459.html

Also Beyond Meat
https://finance.yahoo.com/news/meatless-future-vegan-delusions-beyond-080136873.html

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