While it has been in the news recently, it became official yesterday, Anheuser-Busch is no longer an American Company. That’s right, your favorite domestic beer company is now owned by beer GIANT InBev – you can find some full articles HERE, HERE and HERE. Never heard of InBev? Guess Again - from their press release today:
…over 200 brands that includes global flagship brands Budweiser, Stella Artois and Beck’s, fast growing multicountry Brands like Leffe and Hoegaarden, and strong “local jewels” such as Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Cass, Klinskoye, Sibirskaya Korona, Chernigivske, and Jupiler, among others. In addition, the company owns a 50 percent share in Grupo Modelo, Mexico’s leading brewer and owner of the global Corona brand, and a 27 percent share in China brewer Tsingtao, whose namesake beer brand is the country’s best-selling premium beer…
While I have indicated (on many occasions) that I am all about free trade and competition, I think it is a great thing for the local economies that InBev is keeping the breweries and offices, as well as the brands we know and love. They even changed their name from InBev to Anehauser-Busch InBev!
As I looked at the google chart I started to think…How much money would I have if my parents bought me a share of BUD on November 18, 1984 (despite the fact that I only would have been 3 years old)?
I have no idea how to put in a google finance graph into my post so if you click HERE you can see what I am talking about.
The Result of the BUD Buyout
You could have bought one share of BUD for $2.76 on November 18, 1984. Then the share split a couple times (3:1 in 1985; 2:1 in 1986; 2:1 in 1996; 2:1 in 2000) leaving us with a grand totals of 24 shares. Those shares were then bought by InBev in cash (rather than InBev stock) for $70/share.
Well $70 * 24 shares = $1,680 ($1,677.24 profit in 24 years).
A gain of 60,769.56% and a Annualized Return of 2,530%! These numbers do not even include Dividend Reinvestment which would exponentially increase these numbers via the wonders of compounding.
Before you start to feel confident about picking the next 24 year home run…go google the symbol GM.