Wednesday, September 15, 2010
Because everyone is doing it (almost)
Alcohol. Just about everyone drinks it. While we have different tastes and preferences, one thing counts at the end of the day, we all spend money on it. Which is why you can't go wrong buying Diageo (NYSE: DEO). Diageo is a company that produces and distributes various brands including Smirnoff, Johnny Walker, Tanqueray, and Guinnesss. Right now the stock is fairly priced, and has been a 'steady eddie' for years. The reason Diageo is so successful? The price of alcohol rises steadily over time, but the amount you drink doesn't move inversely to price. So while you are supporting Diageo in the aisles, you might as well share in the profits you are providing to them.
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