8 Jan
Added PepsiCo #82 + Tesla-Pepsi News!
Today we added our 82nd share of PepsiCo (PEP) at $172.86 and are now 18 weeks away from hitting our goal of 100 shares. A share a week, regardless of price, for 100 consecutive weeks is the experiment were running.
The reasoning for this slow grind to 100 is to build a cornerstone position and have the ability to add even more income through selling covered calls.
PepsiCo sure feels expensive now, but probably not so much 10 years out, which is why we buy – for the long game. We are currently +18.97% with a yield on cost of 4.35%.
As we see the rotation from growth to value underway, PepsiCo has been getting love from the investment community, making new ATH’s almost weekly.
So, aside from being the 2nd biggest snacking company in the world, what I love is their commitment to innovation and experimentation.
What am I so excited about?
Is it Rick Astley returning to team up with Frito-Lay?
No.
Is it the release of the Flamin’ Hot Cool Ranch Doritos?
Nope.
The return of Crystal Pepsi?
Nah.
The Lay’s Vodka or the coming Hard Mountain Dew release?
Not even close.
What’s got me excited is the ushering in of a new era – The Electric Long Haul Truck that PepsiCo ordered 100 of from none other than Tesla (TSLA).
The order was placed in late 2017 and the first deliveries are expected to be made by the end of January, 2022.
15 of the semis were supposed to be delivered before the end of 2021, but CEO Elon Musk blamed the delay on “limited battery supply.”
PepsiCo is aiming to turn their Modesto, CA plant into a zero-emission facility, and Tesla will be a big part of this effort.
On January 6th, a Canadian Tesla website posted photos of the first Tesla Megachargers arriving at the Modesto plant ahead of the semis.
PepsiCo is spending a pretty penny on the semis, as the expected costs are $150,000 on the low end to $200,000 for the “Founders Series”. PepsiCo is expected to be spending between $15 million and $20 million.
Considering that the average cost of a brand spanking new semi is $150,000, this seems like a good investment – on the publicity and exposure alone.
As a shareholder in PepsiCo, this is what excites me – they are not afraid to take risks and push forward to be an industry leader and innovator.
Next week we will add share #83 to the bridge portfolio as we are in the home stretch of our great PepsiCo experiment.
Cheers and never stop investing in yourself!
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