There are differences between investing for 5 years versus 20 years, and investing with or against the Politically Correct (PC) crowd.
Whole Foods, or “whole paycheck,” posted great earnings that saw revenue climb 10% to $4.7 billion, a new record high for the company. However, looking more closely, the same-store sales, which came in at 4.5%, were up from 3.1% in the fourth quarter and thus far are up 4.9% in the current quarter. There is no doubt that the clean food/organic/healthy eating craze is gaining momentum; part of the lifestyle is a focus on foods that do not contain any Genetically Modified Organism or GMOs.
Apparently, there are up to 24,500 items that qualify for the non-GMO label. The list keeps growing, as it is now an $8.5 billion industry growing four times faster than gluten-free.
However, on the other end of the spectrum is the GMO market, which is gigantic. It is led by Monsanto, which has been demonized as the purveyor of Franken-food. The company's products provide virus-resistant cassava and water efficient maize for Africa. It's even leading the world in an effort to save the honeybee. Despite the hate for Monsanto and the love for clean eating, since March 2000, it has been no contest, which has been the better investment.
| Since March 2005 | |
| Monsanto+281% | Wholefoods+108% |
It makes you wonder, when policymakers levy huge taxes on so-called sins, if they really think it will stop people who are addicted to things, such as sugar and cigarettes, or if they know it will flood the coffers. I think they say one thing, but love the cash that pours in often from the poorest Americans whose vote they fleeced in the first place.
Moreover, it’s all food for thought as we often use our heart when investing. If the goal is making money, we should use our brains too.
This is an important lesson because 2015 should be more volatile, and even if it's not, a half a percent move these days equals a triple digit move on the Dow giving the illusion of confusion and anxiety that might not be the case. But perception is reality, at least on a short term basis- for investors true really is revealed over a period of time.