A favorite saying of W Buffet – and of many other thoughtful investors – is to follow businesses ‘they can understand’ – though undoubtedly the ‘understanding’ of Mr Buffet is beyond the scope of most mere mortals
Consumer staples – the basics of food and personal care – have been thriving for decades on the ‘understanding’ of everyday clients in the market place, who may also, in some cases, be investors
This market place could be best defined as a confrontational partnership – food & care conglomerates relying on powerful distribution networks in a dogfight over margins all the while in mutual interdependence
As new trends emerge, favoring smaller stores, distributing local produce and chipping away at powerful brands, the durability of this partnership is open to questioning
