MGPI – A Better Investment Than Pappy Van Winkle
Investing in Whiskey has been a hot topic lately and Pappy Van Winkle is the cream of the crop when it comes to maxxx profitzzz, or so it appears, turns out it doesn’t hold a candle to MGPI.
The prices of Pappy Van Winkle shot up on the secondary market which made the bottles nearly impossible to find on shelves. Those who “drank bourbon before it was cool” were buying Pappy on shelves back in 2008-2009.
Depending on the vintage, a bottle of Pappy Van Winkle could go for 5, 10, even 20 times the MSRP on a website like Bottle-Spot.com if they were to sell.
Those are the types of returns that Venture Capitalists would be happy to see. But, what hoops would someone have to go through to sell those bottles? Going back in time, finding the bottles, transporting them, storing them safely (upright, out of direct sunlight, and out of extreme temperatures), then, coordinating a legal sale.
People say all the time that if they could go back in time 10 years that they would buy up all of the Pappy Van Winkle they could. As long as we’re playing pretend, let’s consider another option.
MGP Ingredients Inc. (MGP / MGPI) distills spirits and supplies it to brands all over the country.
If you’ve had Joseph Magnus, Smooth Ambler Old Scout, Boone County Eighteen 33 Bourbon, Green Brier’s Belle Meade, New Riff’s O.K.I., Redemption Rye, or WhistlePig Rye… then you’ve had MGPI juice. In short, they’re absolutely crushing it.
Their stock took a dip recently to $75.41 per share but got as high as $99.73 per share this year.
Do you know how much MGPI stock sold for 10 years ago?
Depending on the day and month, it would range from $0.60 per share to $3.50 per share.
So, if you had $1000 and a time machine, and you could go back in time to scoop up as much Pappy Van Winkle as you could get your hands on, your best turnaround to date would be around $20,000. Certainly nothing to sneeze at, but that same $1000 investment in MGPI stock could’ve scored you north of $165,000, not including dividends.
It’s quite obvious at this point what the best investment would be, and it isn’t the Pappy Van Winkle. In fact, it isn’t MGPI stock either. It’s the time machine, duh!
Raise your glasses to hindsight and good whiskey. MGPI > Pappy Van Winkle.