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Five Good Reasons Not to Invest in Monsanto Company (MON)

There are healthy alternatives

Given the rise in public interest against GMOs, Whole Foods Market, Inc. (NASDAQ:WFM) has seen a sharp uptick in sales in non-GMO foods, and more and more people are buying local produce. Whole Foods has been a solid investment for quite a long time, and is expanding aggressively into the Western markets. I personally shop there, and love the selection and variety found.  To keep its high end customers, Whole Foods has taken an aggressive stance on labeling GMOs.  Loyal customers have rewarded this progressive grocer with record breaking sales.

Deere & Company (NYSE:DE) is also driving solid profits.  With a CAPS rating of 4 out of 5 stars, a dividend of 2.3%, a market cap of $34 billion, and strong earning growth, this stock represents a great way to invest in the agriculture sector without supporting GMO-based big agribusiness. John Deere creates products that are needed by organic and non organic, GMO and non-GMO farms alike.  Any lawsuits or controversy surrounding GMOs, labeling, or the use of pesticides is unlikely to affect John Deere.

The public is likely to force GMO labeling

A bill requiring the labeling of GMO based products has just been rejected, and the public is outraged.  If regulation on this issue does eventually pass, it will hurt Monsanto Company (NYSE:MON). Meanwhile, other countries such as Russia are jumping on the bandwagon and banning GMO products and seeds.  Monsanto’s global market is shrinking right before our eyes.

Final word

If you run the numbers, Monsanto Company (NYSE:MON) looks like a great investment.  But you can achieve better returns from socially responsible businesses like Whole Foods Market.  Simply put, Monsanto has too many headwinds going against it. And it’s easier to sleep at night when you’re properly aligned with your portfolio.  Monsanto is not for the Foolish.

Brenda Johnson has a long position in Whole Foods Market. The Motley Fool recommends Whole Foods Market. The Motley Fool owns shares of Whole Foods Market.

The article 5 Good Reasons Not to Invest in Monsanto originally appeared on

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