Healthy Investing = Wealth #3

by | Jul 14, 2003 | Archives

Yesterday's message reviewed why it makes sense to invest in organic. Below learn why it makes even more sense to go beyond organic for the big profits.

We can see proof that big business is moving into the health business everywhere. For example a recent article in USA Today entitled “Big business gobbling up small organic farms” explains that organic foods still account for less than 1% of the U.S. food market. Yet the article states that big business is jumping in fast. Cascadian Farms, for example, the maker of organic cereals, fruit juices and entrees is now owned by General Mills. Knudsen has been bought up by Smuckers and Kashi belongs to Kelloggs. Though it may be hard to imagine that big companies that have come up with products like Sugar Pops, Fruit Loops and Cocoa Puffs can also be into health, we can see that this is a hard economic fact.

A huge health revolution has started. According to another USA Today article even 7-11 is getting into the act. Now it's possible to sidle up and get an extra fatty hot dog, 32 ounce Big Gulp cola and plastic cheese nachos in the same area where you buy organic snacks.

Here is an inspired investing thought.

Big business will dramatically lower the integrity of organic foods. Count on it. Industry has not yet learned the fact (except perhaps a few CEOS who are now scandal ridden or cooling their heels in jail) that you cannot fool all the people all the time.

Organic should mean more than organic. Joan Dye Gussow, professor emeritus of Nutrition at Columbia University is quoted in Organic Gardening, “When we said organic we meant local. We meant healthful. We meant being true to the ecologies of the regions. We meant mutually respectful growers and eaters. We meant social justice and equality.”

Organic met more than a set of standards defined laws. I rarely make predictions because no one can see into the future, but here is one prediction on which you can count. Big business will dilute the value of “organic”.

In fact the rot has already begun. You can now buy organic TV dinners, frozen organic pizzas and organic meals in a bag. Organic used to mean healthy, something that improved your vitality and organic growers were people who understood and wanted this to happen. The organic line of 7-11s include carbonated fruit? Just wait for this scandal to hit. Every healer knows that carbonation robs the body of calcium and this fruit is targeted at kids who need this calcium desperately to build the bodies that will carry them for life!

We saw in the last message how shares of Horizon Dairy which sells organic milk and related foods has risen from $5 per share to $23. A big profit has already been made (and consequently opportunity lost) in this basic organic food.

The inspired investing trick is to understand that the market for health has not gone away. Big business may ruin the name organic (as they have “sugar free”, “low fat”, “soy” and “all natural”), but they cannot stop thinking people from wanting more energy, longevity, vitality and better health.

A new product and name will rise from the ruins of organic just as a new green forest will emerge next spring from these glorious yellow and red woods. If you want to invest in something you can count on, look for this trend.

Look for what is really healthy, nurturing and containing real care. This is what people truly want. The more big business fudges, lies and cheats; the more this demand will grow. This will create enormous wealth so look for it. Become rich and really help the world be a better place. This will make your investing truly inspired!

There are two shares that may capture whatever the new trend will be. We look at one of them tomorrow.

Until then, may all your investments fulfill you and the world.