2023-10-06 15:35:58
There is no need to make stock market events more complicated than they are. The famous Loriot quote when asked why his works are so often about food – “I personally eat every day” – still serves as the basis for a large number of investors’ investment decisions today. Between banking crises and oil price shocks, there was always one constant: people always ate.
Stock market legend Warren Buffett, also a friend of simplicity, drew conclusions about his Cola consumption from the general public and made a fortune with Coca-Cola shares. The share is one of the best long-term performers on the stock market – including dividend increases for more than 60 years in a row. Other food and drink stocks are also great success stories because of their reliability. McDonald’s above all.
The European counterpart is called Nestlé and, with its 2,000 brands from Nesquik to Häagen-Dazs, Maggi and Thomy to Wagner Pizza, ranks third among the most valuable companies in Europe after the Danish fat-burning injections of Novo Nordisk and the French luxury of LVMH.
Boring government bonds as competition
But Cola, McDonalds and Nestlé are currently weakening on the stock market. Do people suddenly no longer like sweet drinks and fatty foods? Unlikely, we have become too dependent on the taste miracles of these corporations. Then it’s better to have a fat-loss injection for dessert after consuming calories. Stock market experts believe that the weakness in prices is due to interest rates. The reliable dividend payers Cola, McDonalds and Nestlé are no longer needed as investments when a boring government bond from the USA currently promises 5 percent interest.
Corporations are no longer growth miracles, but they are reliable and stable profit machines. They are now a little cheaper: The Cola share has lost 7 percent in value within a week, 17 percent since the beginning of the year. McDonald’s papers became 10 percent cheaper in three weeks. And Nestlé 14 percent since May.
Johanna Kuroczik Published/Updated: Recommendations: 37 Jürgen Dollase Published/Updated: , Recommendations: 27 Hanno Mußler Published/Updated: , Recommendations: 14
For some investors, this is reason enough to bet on a turnaround. The Stuttgart Stock Exchange noted on Friday that call warrants on Coca-Cola, factor 3 long certificates on Nestlé and knock-out calls on McDonalds were particularly in demand. If you don’t like it so speculative, you can of course be content with buying the shares. And watch happily as people continue to eat (and drink) every day – and finance its dividends.
#Fat #sweet #longer #demand