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01-10-2016, 04:10 PM
(This post was last modified: 01-10-2016, 04:31 PM by Caversham.)
(01-10-2016, 02:50 PM)Kerim Wrote: Sure, we all make regular, recurring purchases of clothes, but not always from the same brands / stores / companies. I'm much more loyal to Snickers than to the Gap!
Maybe it is just me, but my family always buys the same brand of jeans, shoes, underwear, socks, etc.
(01-10-2016, 03:11 PM)Dividendsrule Wrote: Come on now....Soda is so old hat for KO, do you buy Simply juice? Zico? Vitamin water? Pike's Peak Tea? Minute Maid?
I drink smoothies and water. I make the smoothies myself with fresh food, and the water I get from the tap.
I agree that KO and PEP are fine companies that have recurring purchases from many people and are more than just soda. I hope to own them both someday. However, people don't need the majority of products they make, they choose to purchase them, and that is my definition of discretionary spending. Ultimately, the only thing that matters is the company itself and its ability to pay dividends in the future, not some arbitrary sector classification. I combine both Staple/Discretionary when determining portfolio allocation/diversity for these reasons.
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Consumer staples are goods or services that people are UNABLE or UNWILLING to cut from their budgets during financial difficulties. Not necessarily a NEED. A way to look at the consumer staple sector is any company that sells goods or services that are in demand every day no matter what the financial atmosphere looks like, in good or bad times.
My great grandfather gave my grandmother his last 10 cents in his pocket so she could buy some ice cream, because she was his baby girl and she wanted it. It might have been unnecessary but the joy that it must have brought them most likely cannot be described in words, at least by me. BTW, Hershey also makes ice cream.
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(01-10-2016, 12:13 AM)Rasec Wrote: It still puzzles me though, why Hershey's is considered Consumer Staples. If you ask me, if my family enters a recession, the first thing we'll cut is chocolates and alike, way before we cut on clothing...
Why the heck is Hershey's consumer staples and not consumer discretionary?
Sugar is one helluva drug and becomes a staple 
But seriously, I have this same question...not sure why HSY is considered a staple.
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(01-10-2016, 06:40 PM)rayray Wrote: Consumer staples are goods or services that people are UNABLE or UNWILLING to cut from their budgets during financial difficulties. Not necessarily a NEED. A way to look at the consumer staple sector is any company that sells goods or services that are in demand every day no matter what the financial atmosphere looks like, in good or bad times.
My great grandfather gave my grandmother his last 10 cents in his pocket so she could buy some ice cream, because she was his baby girl and she wanted it. It might have been unnecessary but the joy that it must have brought them most likely cannot be described in words, at least by me. BTW, Hershey also makes ice cream.
He could have bought her some flowers, a ticket to the movies or a shiny new ring because it was his baby girl and she wanted it instead of an ice-cream, it wouldn't make these 3 examples consumer staples as well! 
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01-11-2016, 11:24 PM
(This post was last modified: 01-11-2016, 11:34 PM by rayray.)
(01-11-2016, 12:38 PM)Rasec Wrote: (01-10-2016, 06:40 PM)rayray Wrote: Consumer staples are goods or services that people are UNABLE or UNWILLING to cut from their budgets during financial difficulties. Not necessarily a NEED. A way to look at the consumer staple sector is any company that sells goods or services that are in demand every day no matter what the financial atmosphere looks like, in good or bad times.
My great grandfather gave my grandmother his last 10 cents in his pocket so she could buy some ice cream, because she was his baby girl and she wanted it. It might have been unnecessary but the joy that it must have brought them most likely cannot be described in words, at least by me. BTW, Hershey also makes ice cream.
He could have bought her some flowers, a ticket to the movies or a shiny new ring because it was his baby girl and she wanted it instead of an ice-cream, it wouldn't make these 3 examples consumer staples as well!
Well, those items are not consumer staples. And I guess, technically ice cream is not but Hershey Co. is and they do make ice cream. My point is that during the Great Depression someone bought his loved one ice cream with the only money he had in his pocket during severe economical trying times. It was my poor example in describing what a "Consumer Staple" product could be in broad terms, I suppose. Hershey makes candy and Altria makes cigarettes, maybe not right in more ways then one but they are what they are, "Consumer Staples." Products or services that people may not necessarily need but want and will spend money on in difficult times. Products that they can still afford or at least something they are willing to buy during hard times as opposed to discretionaries such as high end clothing or restaurants.
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I've updated my valuation and dividend growth projection spreadsheet for the Consumer Staples Sector.
Here is a link to the article with the results for those who may be interested:
Consumer Staples: Finding Value In An Expensive Sector
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(07-21-2016, 02:14 PM)EricL Wrote: I've updated my valuation and dividend growth projection spreadsheet for the Consumer Staples Sector.
Here is a link to the article with the results for those who may be interested:
Consumer Staples: Finding Value In An Expensive Sector
Great article, and I commented on the SA website. I didn't realize that I wasn't following you on SA, so I added that, as well. Thanks!
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(07-21-2016, 04:42 PM)DividendGarden Wrote: (07-21-2016, 02:14 PM)EricL Wrote: I've updated my valuation and dividend growth projection spreadsheet for the Consumer Staples Sector.
Here is a link to the article with the results for those who may be interested:
Consumer Staples: Finding Value In An Expensive Sector
Great article, and I commented on the SA website. I didn't realize that I wasn't following you on SA, so I added that, as well. Thanks!
I noticed both, thanks for the follow!
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