What better way to start my installment of Sunday Funday (click here to figure out what Sunday Funday) is then to talk about one of the most popular beers on the market. Samuel Adams, seen by many as a one of a kind beer, is in fact a one of a kind company. From the investing standpoint we often ask ourselves, what makes a good company? The answer is as simple as having a good product and Boston Beer Co. has just that. They don’t just make a good product, but their brand loyalty is quite extraordinary. It may be that they take pride in their product or it may be that they just make a damn good beer, either way SAM is doing something right.
In the down economics time as of late, it seems that many turn to alcohol as a cheap and fun form of entertainment. While Americans are forced to cut back in many aspects of their lives, they also splurge in a specific few. When it comes to beer buying on Saturday night even the cheapest of us will drop an extra $5 to get a better beer, and it looks to be that the beer of choice is Samuel Adams. The higher P/E ratio compared to competitors says it all, investors are willing to pay more for a better company. I can also sleep safe at night knowing that some one passionate like Jim Koch is standing behind his product. With great earnings, great brand loyalty, and a damn good beer I would have a little Sunday Funday with SAM.
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