6th Stock

Farming and Food Production

In review you now have 5 stocks and 1 ETF.  Consolidated Edison Inc. (ED) or another utility, Kraft Foods Inc. (KFT) or another food stock, Eaton Corp (ETN) or another industrial stock, and U.S. Bancorp (USB) or some other financial (Bank) stock of choice, an oil or gas my recommendation was Chevron Corp (CVX).  Last pick was an metal stock my recommendation was copper ore Freeport-McMoRan Copper & Gold Inc. (FCX) but any metal mining sector stock would do.  Remember you can own any stock in the sector not the one I recommend.  I like the SPDR Gold Shares Trust GLD.  

 

Let us go back to “The Limits to Growth” the study by Graham Turner, my next recommendation stock number six is a food production stock.  Notice I have created my own Sector.  Well I did that for your fifth stock pick too.  Notice in the gold line Food per capita.  Innovation and new technologies have bent the line upward.  But the problem and only problem is how many people can we support on earth?  I don’t know.  What I do know is when I was in High School the population was under 4 billion.  Now we have almost 7 billion.  The population growth line is from the lower left to the upper right and goes straight up.   http://www.worldometers.info/world-population/  We can stop making ethanol to feed more people, but unlike me most of the world doesn’t worry about loosing weight, but go to bed hungry now.  The population can’t keep doubling.  More people are eating meat too, which is wasteful if your goal is to feed as many people as possible, one ounce of meat takes 20 ounces of grain to produce.  http://news.yahoo.com/blogs/lookout/18-million-u-households-struggling-feed-families-212702600.html



So I will tell you stocks that fit into this new sector.  E. I. du Pont de Nemours and Co (DD) agriculture division that makes and sells hybrid seed and genetically modified seed, Monsanto Co (MON) seeds, Potash Corporation of Saskatchewan, Inc. (POT) fertilizer, Deere & Company (DE) farm equipment, Tractor Supply Company (TSCO) the Home Depot of farming country.

These companies are interesting.  They are not the only interesting stocks just a few I watch.  I don’t own a agriculture sector stock yet.  If pressed I would pick a fertilizer stock.  POT is interesting to me just because it is a valuable commodity in limited supply, also it is located in Canada.  Any agriculture stock will do to diversify your portfolio.  This not enough food too many people eating is a long term tread.  Until the human population stabalizes or starts decreasing this is something you can count on to build your wealth.http://news.yahoo.com/blogs/lookout/vegetarian-2050-190426669.html