In this video, Jim Mueller, author of the Fool's premium research report on Whole Foods Market (WFM +0.00%), sits down with Motley Fool analyst Austin Smith to discuss the merits of investing in the health food grocer. Mueller points to three distinct and compelling reasons to own the stock despite naysayers who are deterred by a high valuation. Indeed, Mueller's first point is that Whole Foods represents a "great growth story." When it comes to produce, Whole Foods is a leader, not a follower, and as a result forces the hands of competitors, such as Kroger (KR 2.26%), to step up their organic game. Secondly, Whole Foods has a strong balance sheet with minimal debt, and consequently earns an attractive return on equity. Lastly, he points to Whole Foods' chief executive, John Mackey, who has been at the helm for decades and who Mueller says is there because he wants to be and not because he has to be -- which has made all the difference.
3 Reasons to Buy Whole Foods Today
By Jim Mueller, CFA and austin smith – Nov 28, 2012 at 5:00PM
NASDAQ: WFM
Whole Foods Market
3 reasons you should be thinking about a position in Whole Foods Market.
About the Author
Advisor for Motley Fool Options, Future of Entertainment, and Energy Insider, Jim learned how businesses are run while putting his Ph.D. in biochemistry to use at a small biotech company. Jim started investing over two decades ago, initially making the same mistakes most people do. He changed careers to work at the Fool, where he's improved his investing process while developing an appreciation for the importance of investor psychology and taking the long-term view. He received the CFA charter in 2015.