It might confuse the market, but Associated British Foods is a buy

Associated British Foods is a unique firm: half food producer, half fashion retailer. That confuses the market, says Rupert Hargreaves, but its diverse nature can give the company strength.

Primark shop
Primark has paid a heavy price for its refusal to move its operations online
(Image credit: © Xavi Lopez/SOPA Images/LightRocket via Getty Images)

The Weston family still owns 55% of Associated British Foods (LSE: ABF), the clothing-to-tea company they founded in 1935. This long-term focus has helped drive the business forward over the past eight and a half decades – a rarity among FTSE 100 organisations.

In some respects, ABF is two companies under one banner: there’s the retail side of the business, which owns the Primark brand; then there’s the food side of the business, which owns well-known brands such as Twinings Tea as well as food production facilities, including bakeries and British Sugar.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.