The Twinkie Investment Model: Want to be a Millionaire?

Author: Steve Woods
Published: November 16, 2012 at 9:31 pm
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Now that Hostess has announced that it will shutter its doors over an unresolvable labor dispute, seems everyone is hoofing it to their local 7-11, Walmart or Save Mart in search of a Twinkie. Good luck with that, as many store shelves have emptied earlier today, your neighbors gathering up a box (or twenty) to properly perform a eulogy to the cream-filled yellow thigh-expanders.

With each passing hour, little dusty metal shelves next to the bear claws and mini crumb cake donuts are getting bare, and with each news story shared on Facebook, interest grows. When things get scarce they go up in price, with investment opportunities appearing before our hungry eyes.

If you had inside knowledge of the plant closure, and cash to spare just 24 hours ago, how much would an initial investment be worth? Let's start by looking at how much the cream-filled goodies cost before the news hit the media.

Yesterday, Mega retailer Walmart had full shelves of Twinkies, selling at around $7.00 for a box of twenty. What if you had purchased $100 worth at the time?

How much are the little yellow sin-filled cakes selling for online now, with the announcement of Twinkiegeddon? Well, Amazon actually has listings now at $150.00 for a box of twenty. Granted, other sellers are offering a box of ten for as "little" as $20.00. If you'd sold your $100 worth of Twinkies today you'd have $285.

What if you'd kept your boxes over the next year, as the 18,000 ex-employees of Hostess continue looking a job that makes full use of their baking, packaging, shipping and marketing skills. How much will a box of Twinkies go for online in 2014? I'm thinking it might be closer to that unbelievable $150.00 price, or $2,142 for your initial investment of $100.

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Article Author: Steve Woods

Tech Geek. Digital Sommelier. Tea Aficionado. Founder of http://www.kupeesh.com Twitter: @YouKnowSteve

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