Fascinating mail-bag question I wanted to answer: Tim, which area of traditional blue-chip investing currently concerns you the most and why? -Alex.
Right now, my biggest concern is the blue-chip stocks related to the production of food. A lot of people blame 3G Capital for production deterioration, but it really got started with Breyers Ice Cream which has been owned by Unilever since 1993. In the late 1990s, Unilever tried raising the price of ice cream as cream, sugar, and milk shot up in price. But passing the costs onto consumers didn’t work–the sales went down a bit, and Breyers found itself not gaining much (if anything) from raising the price.