The Sociology of Finance
Portfolio strategy

Dole Is Too Risky

Dole (NYSE:DOLE) is an international fruit and vegetable company and is familiar to most consumers. The fruit and vegetable business is a tough one because it is largely a no-moat commodity industry and is subject to the fickle whims of both consumers and mother nature. Because of these issues, companies like Dole often lack both control over supply and pricing power, making profits unpredictable and erratic. Yet for all its risks, the fruit business can generate plenty of cash when conditions are right:

DOLE Free Cash Flow TTM data by YCharts

The above figure reveals that in the last twenty years, Dole has gone through three major cycles of alternating profitability and loss, and that the most recent...

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