This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Peek in Your Refrigerator Is Recipe for Portfolio

BOSTON (TheStreet) -- The next time you head into the kitchen for a snack you may also be able to satisfy your appetite for quality investments.

A common bit of advice is that you should invest in what you know, and food is something we all know well. Are there benefits to a "refrigerator portfolio," choosing investments based on the brands you and your family buy?

A common bit of advice is that you should invest in what you know, and food is something we all know well.

Open the fridge and take a peek. Are there Heinz (HNZ), Coca-Cola (KO) or Pepsi (PEP) bottles? Hormel (HRL) meats (Spam anyone?) or Tyson (TSN) chicken strips, perhaps?

Are there Hershey (HSY) bars chilling in the freezer or cereal boxes from Kellogg (K) and General Mills (GIS) stocked beside it? Is there a box of Arm & Hammer baking soda (made by Church & Dwight (CHD)) wedged in the back, alongside a can of Kraft's (KFT) Maxwell House coffee and some Sara Lee (SLE) pound cake or Jimmy Dean sausages?

Did you stock up on all those goodies at Safeway (SWY), Kroger (KR), Whole Foods (WFM), Wal-Mart (WMT) or Target (TGT)?

If you assume -- probably correctly -- your neighbors buy similar products, these refrigerator stocks could beef up your portfolio and keep your retirement plan well-fed.

Mitch Schlesinger, CFA, managing director of FBB Capital Partners in Bethesda, Md., says now might prove a great time to get a taste for food company stocks.

"It makes some sense, especially in volatile markets, because those companies tend to have stable recurring cash flows, which gives them business stability," he says. "We used to think of them as recession-proof. Maybe that's not quite accurate, but they do tend to be repeat purchase items that people buy year in, year out, in good times and bad."

Stock quotes in this article: ADM, MCD, KO, PEP, MKC, NSRGY, FUD, MOO, EATX, PBJ 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs