Here is an example of the benefits of long term investing. I have been reviewing my IRS schedule D from 1999.I bought 400 shares of SBUX for about $9000. I sold a few weeks later for a small profit. Had I held the 400 shares and factored in the stock splits I now would hold 6400 shares. At $75 per share my original SBUX would now be valued at approximately $480,000. This does not factor dividends into the equation only market value. This is at a time when SBUX is running over a few speed bumps. So, a long term holder/believer ought to be adding to the SBUX position at this challenging time. I cannot emphasize enough to young stock traders to the great benefits of buying these wonderful companies and just holding them long term. Along the decades, I held shares of many winning lotto tickets (stocks), but like a fool sold for short term taxable gains when I only needed to buy and hold. Sounds boring and unexciting but it would have made me a very wealthy old man, today.
Great video. I don't disagree with anything you said when looking at a five year time horizon. If you are looking at SBUX from a qualitative angle and are interested in buying and holding this brand for 20 years or longer, you should be buying today and continue to buy as the price falls. This could fall in the textbook category of "amazing business at a fair price" potentially depending on how you feel about the business long term.
Unfortunately I have to agree with you. Was looking to buy this at 75$ but seeing these earnings I might need to wait a little longer. Still an interesting company! Will you do an update on CVS as well? Blood in the streets there!
I think the simple truth is that people have less money now and Starbucks overcharge for their coffee, their brand is strong but they just dont have that much pricing power. If you spend hundreds of dollars every month on coffee that is very easy to cut to close to zero by choosing a cheaper vendor or simply making your own coffee..
Crater obliterated the CEO on air for having lousy software that kept people in lines for for too long for pick up . The CEO was trying to make a nuanced point, but he looked less than credible. The CEO didn’t acknowledge the problem, and that took away some confidence for a-decent reason.
Also there is a lot more competition ongoing in the Coffee space. I see so much more different coffeeshop around. So Starbucks definitely have hard time to grow. Of course they still can maintain their no1 in coffees pace. But then it hard to achieve high growth anymore.
these fast food places were pushing the limits on how much their customers were willing to pay. Customers are looking for cheaper, better and there is lots of options for customers to take their money elsewhere.
Good video. Always seeing your perspectives on things like this. I finished a DCF on this one April 9th and had it at $65.62, which is right around where you seem to have it. I might update it and do a video on it tonight. I think I might try to scoop some if it goes to the high 50s.
The 23 multiple at the end of the investing period is still high for me since SBUX will eventually slowdown due to rise in competition and size of SBUX. But I understand you are looking at historical multiples and your assessment is fair. It really depends on the individual investor, what assumptions are you comfortable with, time horizon, etc.
Something shocks me about starbucks is how terrible their balance sheet is. Same for Adobe. I like both companies but just getting away for that terrible debt
SBUX should be traded at the same multiple as BTI/MO as they all have sales decline. But BTI/MO is doing buybacks so they should have higher valuation than SBUX.
my kids (teenagers) used to go to starbucks...not anymore. They are willing to make coffee at home or Mcdonalds or local coffee stores...I was shocked...these kids usually have no concept of money lol
it´s over for starbucks and we will see 50$. Mark my tweet ^^
That's too pessimistic
61 is my guess but will take weeks or months to get there b/c retail investors love SBUX
😂
My @@theresamorgavi9196
50 $ sounds fair. With 5 % dividend yield I'm willing to take the risk of owning Starbucks. 😎
Starbucks has added like 3 stores in my town this year lol. And they always seem busy. They have a super loyal customer base.
Here is an example of the benefits of long term investing. I have been reviewing my IRS schedule D from 1999.I bought 400 shares of SBUX for about $9000. I sold a few weeks later for a small profit. Had I held the 400 shares and factored in the stock splits I now would hold 6400 shares. At $75 per share my original SBUX would now be valued at approximately $480,000. This does not factor dividends into the equation only market value. This is at a time when SBUX is running over a few speed bumps. So, a long term holder/believer ought to be adding to the SBUX position at this challenging time. I cannot emphasize enough to young stock traders to the great benefits of buying these wonderful companies and just holding them long term. Along the decades, I held shares of many winning lotto tickets (stocks), but like a fool sold for short term taxable gains when I only needed to buy and hold. Sounds boring and unexciting but it would have made me a very wealthy old man, today.
Awesome update .. your narrative adds a lot of value to your channel .. thank-you for the video!
I'm buying all the way down
Would love to see some CVS Update after todays earnings :)
Was just about to write this comment!
Another vote for CVS video
Great analysis! Would love to get your thoughts on CVS.
summary, buy now!
"When facts change, I do change my mind" - You are doing great buddy. And that is also my entry price if at all I would enter.
Perfect, was hoping you would look at SBUX
Great video. I don't disagree with anything you said when looking at a five year time horizon. If you are looking at SBUX from a qualitative angle and are interested in buying and holding this brand for 20 years or longer, you should be buying today and continue to buy as the price falls. This could fall in the textbook category of "amazing business at a fair price" potentially depending on how you feel about the business long term.
Unfortunately I have to agree with you. Was looking to buy this at 75$ but seeing these earnings I might need to wait a little longer. Still an interesting company!
Will you do an update on CVS as well? Blood in the streets there!
I would say it is definitely a strong buy at this price
Great video. Would be interested in a video on CVS too. Down big today after earnings.
I think the simple truth is that people have less money now and Starbucks overcharge for their coffee, their brand is strong but they just dont have that much pricing power. If you spend hundreds of dollars every month on coffee that is very easy to cut to close to zero by choosing a cheaper vendor or simply making your own coffee..
Profit margin on coffee is huge, they need to lower prices and increase people coming in the door
thank you "PI", wonder what you think about CVS.....
I’d also love to see some analysis on BROS ☕️
I am indeed a buyer and will ad Friday another 20 Shares for the long Run 20 Years+
Great analysis! ignore the haters got a subscriber here
Crater obliterated the CEO on air for having lousy software that kept people in lines for for too long for pick up . The CEO was trying to make a nuanced point, but he looked less than credible. The CEO didn’t acknowledge the problem, and that took away some confidence for a-decent reason.
Also there is a lot more competition ongoing in the Coffee space. I see so much more different coffeeshop around. So Starbucks definitely have hard time to grow. Of course they still can maintain their no1 in coffees pace. But then it hard to achieve high growth anymore.
im buying
these fast food places were pushing the limits on how much their customers were willing to pay. Customers are looking for cheaper, better and there is lots of options for customers to take their money elsewhere.
Almost everyone loves starbucks coffee.. Stores always busy. I think they know what they can charge.
Good video. Always seeing your perspectives on things like this. I finished a DCF on this one April 9th and had it at $65.62, which is right around where you seem to have it. I might update it and do a video on it tonight. I think I might try to scoop some if it goes to the high 50s.
I am surprised that people are shocked with the earnings. I have read boycotts are affecting Starbucks earnings.
Good for long term opportunity, macro factors affecting business
Accumulation time, IMO, slowly build up a nice position
Mr. Market is gone nuts! massive undervaluation and clearly an incredible buying opportunity.
on its way to 61 after next quarter. Revenue declined. Now they are doing buy one get one free....that will hurt the margin next quarter.
Cramer is bearish, time to dca for a 5-10year hold
The 23 multiple at the end of the investing period is still high for me since SBUX will eventually slowdown due to rise in competition and size of SBUX. But I understand you are looking at historical multiples and your assessment is fair. It really depends on the individual investor, what assumptions are you comfortable with, time horizon, etc.
Thank you for giving me clear financial advice and making me buy, as a token of appreciation I liked the video.
CVS took it on the chin today
CVS vs SBUX? Both are crashing, but CVS is showing some strength while SBUX is falling with no break.
another case of dividend strangling a company
Not vedeo but video ;)
Something shocks me about starbucks is how terrible their balance sheet is. Same for Adobe. I like both companies but just getting away for that terrible debt
SBUX should be traded at the same multiple as BTI/MO as they all have sales decline. But BTI/MO is doing buybacks so they should have higher valuation than SBUX.
the millennials I know have stopped going to Starbucks and now make their coffee at home and like it better.
my kids (teenagers) used to go to starbucks...not anymore. They are willing to make coffee at home or Mcdonalds or local coffee stores...I was shocked...these kids usually have no concept of money lol
yep and i can make the same black coffee using a sbux kcup for 50 cents instead of paying $5
Will wait under 70 that report was brutal
You lowered your fair value because you are scared of looking wrong, because the stock went down!
I hope you're joking
@@thepatientinvestor9580 of course lol
Staryuk's. Going flat ... fast ...like bad coffee.
TMF looks cheap
I don't trust this CEO!