September 18, 2012


The day Facebook (FB) went public, its shares closed at $38.23, just pennies above the initial asking price of $38. That same day, shares of organic mac ‘n’ cheese maker Annie’s (BNNY) closed at just a little less than that at $36.39. If you’d bought Annie’s that day, your shares would be up by nearly one-third right now. Facebook shares, meanwhile, are down more than 40 percent.

You’d be even better off if you’d gotten in on the ground floor of the Annie’s IPO in March, when shares were priced at $19. You would have nearly doubled your money on that first day of trading alone. In what kind of world does a company that makes bunny-shaped pasta go public and get a dotcom-style pop, while a social media juggernaut that has fundamentally changed the way humans communicate turns into one of the great stock market stinkers?

A world in which bubbles are bursting all over. Also, it’s good mac’n’cheese. But the question is, are we moving to a time when not just mac’n’cheese stock, but actual mac’n’cheese, will be your best investment?

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