One Busch Place
St. Louis, MO 63118
Are ya still mad at me? Ya know I love ya, right? I'm really sorry about
the cat. How was I supposed to know it wasn't milk? Okay, I admit I may have
had a few too many that night but I thought I was being helpful when the
cat kept meowing. I would have never knowingly given the cat that beer. I
just figured when "Lucky" stopped meowing that he was happy.
Speaking of beer, Ma, can I try and make it up to you? I know you've been
looking for something to invest in with that money that Uncle Seymour left
you. I have a great idea! ANHEUSER BUSCH (NYSE: BUD) would be a great
stock for you! Yes, it's that company that makes all the beer. Did you know
that it holds a 44% share of the beer market in the US of A? That's almost
half, and as you know, Americans drink lots of beer! They also own and operate
all of the Busch Gardens amusement parks and all of the SeaWorlds across
HERE'S WHAT WE'RE HOPING FOR: Mom, I really like this company. They've
done some things in the past few years to strengthen the operation like selling
the St. Louis Cardinals, closing down their failing Eagle Snacks business,
and selling their food division (Campbell Taggart). They are concentrating
on selling beer, manufacturing all those aluminum cans, and recycling, too!
Plus they have the very profitable theme park business. On top of all of
this, they have those beautiful Clydesdale horses that you like so much.
Still not convinced, Mom? Well, despite having some pretty weak businesses
to support (the ones I told you about above), they've managed to return better
than 17.5% annually in each of the past 15 years. Think about how strong
they'll be as a leaner and meaner company. That doesn't include dividends
either! They pay $0.96 a share in dividends each year, which represents about
2.20% right now. All together, that's been close to 20% annually. They also
grow their dividend about 11.5% a year on average.
HERE'S WHAT TO LOOK OUT FOR: Is the stock expensive? A little bit,
but that's okay. I want you to own this for the next 20 years and unless
we all stop drinking beer or going to have fun at those theme parks, then
I think Anheuser Busch will be just fine. And so will you Mom :) Budweiser
is one of the great American brand names, right up there with "apple pie"
Mom, I have to go now, but I want you to know that I love you, I'm sorry
about "Lucky", and I hope you'll take a look at Anheuser Busch!
Talk to you soon :)