Long the Pantry

by Mr Juggles

Prices for certain foods are up big. On its last conference call, Costco — in response to a question on where they were seeing price inflation — cited blueberries (up 20%), cheese (mozzarella up 25%), chicken (up 12-15%), coffee (up 12-15%), and butter (up high single digits). These are excellent returns if you’re holding food inventory.

Recommendation: We advocate buying large quantities of cheese, coffee, and butter. Rent temporary storage if necessary. But the best way to play this is probably through live chickens. Own the inventory (chickens) for price appreciation while clipping the dividends (eggs) in the interim. It’s a no lose proposition.

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