Campbell soup: mmm mmm...up!
Filed under: Food, Recession, Investing
It's an old stock investing yarn -- buy stocks in companies that make things people actually use, even in downturns. Everybody buys toilet paper, for example. So durable goods companies are often more solid than, say, the company that makes trendy footwear or peddles hard-to-define credit vehicles. Yesterday's incredible stock market plunge put this saying into stark relief, when every single stock in the S&P 500 dropped, except for one...the Campbell Soup Company.
That's right. All 499 stocks tanked except for the guys who make soup. Campbell's stock edged up 12 cents, to close Monday (the worst stock market drop in two decades), at $37.75.
Campbell's, a 136-year-old company that still carries the gold award label it won for quality at the 1900 World's Fair, is the largest manufacturer of soup in the world.
It might be a stretch to say this proves Americans are through with high-flying Gilded Age nonsense and want to embrace its more humble roots. But maybe not.
Because pretty much everybody could use a nice bowl of soup right about now. And maybe a few goldfish crackers. Campbell's owns Pepperidge Farms, too.
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Reader Comments (Page 1 of 1)
9-30-2008 @ 7:07PM
Anthony Triana said...
I love the old time 'chicken and rice"...I'm calling my broker...
Reply
10-01-2008 @ 4:01AM
Queenie said...
Well...this is a no brainer! People are stocking up, knowing that our economy isn't so MMM MMM GOOD.
Reply
10-03-2008 @ 9:51AM
Eleanor said...
I love soup, not because of the price necessarily, so I make lots and keep it in the freezer. When I want a quick healthy meal, I can add some of Campbells to my concoction with lots of veggies and beans etc. and spice it as we like. Always great.
Reply
10-15-2008 @ 8:51AM
Chris Burritt said...
soup eaters, I'm a reporter for Bloomberg News, a financial news service, and I'm looking for consumers buying more Campbell Soup primarily because it's an inexpensive meal. I'm trying to sort out idea that people buy more soup during economic downturns. Anyone who would be willing to talk to me about this? tks Chris Burritt in Greensboro, N.C. (336) 808-1348
Reply