Saturday, January 31, 2009

Beer better investment than newsprint

The news on newspapers continues to be bad. In fact, rather than waste your weekly paycheck on the daily newspaper, beer makes for a better investment.

According to Digital Deliverance, if three years ago you had purchased $10,000 worth of beer and then got drunk each day ever since, the value of the deposits on the beer kegs would have given you a better Return on Investment than if you had investment that $10,000 in almost any U.S. newspaper company. Moreover, you'd have plenty of beer left and would have had a much better time!

Using today's stock prices as your guide, buying beer and getting drunk night would on average have given you a ROI three times better.

Even worse (or better, depending on your perspective-JB), if you had invested in the McClatchy company, beer instead would have given a seven-times better ROI. Beer yielded a 12-times better ROI than the Journal Register Company. And beer toasted a 41 times better ROI than an investment Gatehouse Media. The executives of those companies are losing advertising, losing circulation, and losing the financial community's confidence. The executives can hardly make a case for being financially sober. In their cases, the 'empties' aren't the beer kegs.

I wonder how much better than three times my ROI would be on beer, vs. investments in Maine's watered-down dailies?

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