Healthy Investing + Wealth #4

by | Jul 15, 2003 | Archives

Recent messages have looked at why investing in the health revolution makes sense. Yesterday's message reviewed how this trend is in full bloom and why we should now look beyond organic now.

Big business has jumped on the organic bandwagon and we can be sure that they will misuse and dilute the value of this word. Yet demand for the value that has meant organic in the past will remain.

How can we find places where the new names and products that will arise to fill this demand? One place to watch for and cash in one this shift is at Whole Foods Markets.

Founded in 1980 as one small store in Austin, Texas, Whole Foods Market® is now the world's largest retailer of natural and organic foods with 144 stores in North America. To date Whole Foods Market remains uniquely mission driven. They are highly selective about what they sell, dedicated to stringent quality goals, and committed to sustainable agriculture. They claim to believe in a virtuous circle entwining the food chain, human beings and Mother Earth. Each is reliant upon the others through a beautiful and delicate symbiosis. If they maintain this integrity, then the new word for organic will appear in their stores.

Their website claims that they obtain their products locally and from all over the world, often from small, uniquely dedicated food artisans. They say they strive to offer the highest quality, least processed, most flavorful and naturally preserved foods because they believe that food in its purest stateunadulterated by artificial additives, sweeteners, colorings and preservativesis the best tasting and most nutritious food available.

They also claim to believe that companies, like individuals, must assume their share of responsibility as tenants of Planet Earth. On a global basis they actively support organic farmingthe best method for promoting sustainable agriculture and protecting the environment and the farm workers. On a local basis, they are actively involved in communities by supporting food banks, sponsoring neighborhood events, compensating their employees for community service work, and contributing at least five percent of total net profits to not-for-profit organizations. Shares of Whole Foods market are traded on nasdaq under the code WFMI. The shares of this company have risen from a low point in July 1995 of $5 per share to $62, but have recently tailed off to $43. This is may be good news as this lowered price has reduced the P/E ratio to below 30. According to one leading investment analyst Marty Zweig, the P/E of a company should be greater than 5 to eliminate weak companies, but not more than 3 times the current Market P/E because the situation is much too risky and never greater than 43. WFMI's P/E is 29.98, while the current market PE is 28.00. Therefore, it passes P/E test.

Before you invest though, go visit one of these stores. I first learned about Whole Foods Market from our son, Jake. He raved about the place because he loves to shop there and he told me to consider buying their shares. You can get complete details about Whole Foods Market at There is another good market to consider that may take your investments beyond organic. We review it tomorrow. Until then, good health and investing.