I have nothing really in this space and figured it's a pretty decent industry, with lots of M&A and pretty recession proof. Does anyone know of any good deals right now, something that might be flying under the radar? Or should I stick to the big names like DEO, STZ or BUD. What about index funds that track these types of companies? Or so called "Sin ETF" Does anyone here have exposure to these?
I'm no stranger to BUD myself - great company. They're all good, but STZ looks a tad "hot" to me right now.
Okay great! I like the 3% yield on BUD too so I will probably get a position in them. I know a few people holding STZ, but that's mostly because they work for a subsidiary of them. Why exactly are they hot right now?
Re STZ: I'm not really a chartist, but anytime I see a company's chart going just about straight up at ~ 90 degrees, I tend to get cautious. They're solid, but I'd personally probably pause and wait for a bit of a pullback before jumping in. But they could certainly keep going higher.
I've taken a look into some european ones, mainly Carlsberg and Heineken, but I've always seen some things that I didn't like. And there is always the government messing around with alcohol tax (at least this happens in Europe) which I imagine is only good for the companies who make the cheapest stuff. When the prices go up people won't stop drinking but they will drink what is cheap. And I can't help but realise that I'm drawn to look at these stocks because I enjoy a nice cold beer once in a while. And some red wine. And vodka.. and whiskey... yeah you get the point. So long story short: while I would like to own a booze equity (as you so elegantly put it) I know it's partly due to personal reasons and we all know that feelings and investment decisions don't mix. And like I said, there has always been something in the financials that has caught my eye and I've decided to invest my money elsewhere.
Ahh that's an interesting take on the subject, here in Ontario the government is so integrated into the supply chain of alcohol companies and they tax the consumer heavily and secretly on the retail side too. I know in the USA it differs state by state, some places like PA are similar to Ontario and other states I can buy it basically anywhere. I can see how all this makes it a very complicated situation to fully understand.
