Starbucks; buy, sell, hold?

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260chrisb
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Starbucks; buy, sell, hold?

Post by 260chrisb » Tue Jun 11, 2019 8:06 pm

Anyone hold and have any thoughts on SBUX over the next 3-5 years? It's one of the few individual stocks I own and I bought shares 10 years ago. Needless to say it's done very well. It's about 2% of my retirement holdings and is in a traditional IRA. My advisor has tried to get me to sell it or trim it many times over the years. I love the company and love their products and have for years and think it's still a good long term holding. Their business is consumer driven with addictive and unique products that appeal to nearly every age group above 10. I like it; what say you?

ThankYouJack
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Re: Starbucks; buy, sell, hold?

Post by ThankYouJack » Tue Jun 11, 2019 8:16 pm

I think Starbucks coffee is overrated and as coffee becomes bigger, I think local roasters will become even more popular. Sort of like beer, with microbreweries in the last decade or so.

I'm not sure about the stock. If you're torn, maybe sell half your holding - then you'll be right one way or the other :)

Rudedog
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Re: Starbucks; buy, sell, hold?

Post by Rudedog » Tue Jun 11, 2019 8:55 pm

I have purchased Starbucks coffee in the past, there is one on almost every street corner in Chicago. However, I much prefer "dark roast" coffee from local coffee shops, local roasters. However, the local Starbucks always seems to be busy. You may want to consider reducing your position a bit.

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arcticpineapplecorp.
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Re: Starbucks; buy, sell, hold?

Post by arcticpineapplecorp. » Tue Jun 11, 2019 8:56 pm

who knows? do you think people who think they know really know? are you aware of how much can go wrong in 3-5 years with any company? Nobody knows Nuthin. Because the future is unknown. You want assurances, but there are none at the end of the day.

Investing in individual stocks is riskier than owning the market. The only reason to own them is you think they'll do better than the market. If you thought the other two possibilities would come to pass: 1. match the market, 2. underperform the market, then you wouldn't own individual stocks. Because you believe your individual stocks will outperform the market (otherwise it'd be silly to own them given the other two outcomes) this begs the question "Why don't you put all your money in individual stocks since you believe they'll outperform the market?"

2% is not large enough to destroy your future if Starbucks goes belly up.

You'll owe capital gains taxes if you sell. You can defer that to beneficiaries who get a step up in cost basis or can donate appreciated stock and get a tax deduction.

When asking if you should buy, sell or hold ask yourself the following:

"If I didn't have 2% of my portfolio in starbucks, would I go out right now and buy the equivalent of 2% of my portfolio in starbucks today?"

If the answer is no, why are you holding it?
If the answer is yes, why have you not bought more?

oh and I own starbucks too...in my total stock market index fund. That's the beauty of owning the market. Whenever someone humble brags about owning a particular stock I can say I own it too but in a much less risky fashion.

just for fun here's several companies that did poorly over the past 5 years (SEARS, GE, Kodak, JC Penny). I'm sure there are many others. Yeah, I know you want to know about the next 5 years but my crystal ball is cloudy.

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Re: Starbucks; buy, sell, hold?

Post by CoastalWinds » Tue Jun 11, 2019 9:44 pm

arcticpineapplecorp. wrote:
Tue Jun 11, 2019 8:56 pm
just for fun here's several companies that did poorly over the past 5 years (SEARS, GE, Kodak, JC Penny). I'm sure there are many others. Yeah, I know you want to know about the next 5 years but my crystal ball is cloudy.
Unfortunately, we holders of VTSAX owned these stocks too.

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Re: Starbucks; buy, sell, hold?

Post by willthrill81 » Tue Jun 11, 2019 9:48 pm

Sell it and buy VTSAX instead. :D
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: Starbucks; buy, sell, hold?

Post by willthrill81 » Tue Jun 11, 2019 9:50 pm

CoastalWinds wrote:
Tue Jun 11, 2019 9:44 pm
arcticpineapplecorp. wrote:
Tue Jun 11, 2019 8:56 pm
just for fun here's several companies that did poorly over the past 5 years (SEARS, GE, Kodak, JC Penny). I'm sure there are many others. Yeah, I know you want to know about the next 5 years but my crystal ball is cloudy.
Unfortunately, we holders of VTSAX owned these stocks too.
As always, the problem is that we don't know what will perform well going forward. The quote below illustrates this very well.
At the beginning of 2000, the 10 largest market-cap tech stocks in the United States, collectively representing a 25% share of the S&P 500 Index—Microsoft, Cisco, Intel, IBM, AOL, Oracle, Dell, Sun, Qualcomm, and HP—did not live up to the excessively optimistic expectations. Over the next 18 years, not a single one beat the market: five produced positive returns, averaging 3.2% a year compounded, far lower than the market return, and two failed outright. Of the five that produced negative returns, the average outcome was a loss of 7.2% a year, or 12.6% a year less than the S&P 500.
emphasis added
https://www.researchaffiliates.com/en_u ... -what.html
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

sambb
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Re: Starbucks; buy, sell, hold?

Post by sambb » Tue Jun 11, 2019 10:00 pm

SBUX? buy sell hold>

I buy, then i hold, then i drink the coffee. I dont sell it.

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9-5 Suited
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Re: Starbucks; buy, sell, hold?

Post by 9-5 Suited » Tue Jun 11, 2019 10:42 pm

This is an entire forum built on the premise that no one can answer that question. Funny.

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Re: Starbucks; buy, sell, hold?

Post by surfstar » Tue Jun 11, 2019 11:08 pm

If you like Starbucks, buy their coffee (I don't - not just them, but any; make my own for pennies a cup). I wouldn't continue to hold the stock, though.
Fake meat - that's the future!

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Re: Starbucks; buy, sell, hold?

Post by bgf » Wed Jun 12, 2019 8:10 am

you've held sbux for 10 years and its only 2% of your holdings? you never sold a share? did you never buy more either?

i'd just let it lie, neither buy nor sell. do nothing.
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Re: Starbucks; buy, sell, hold?

Post by Sandtrap » Wed Jun 12, 2019 8:18 am

IMHO that's too many eggs in one basket.
Unless it is "play money" and disposable.
Why?
Because you don't know if it's going to be the next PG&E, Radio Shack, Sears, and the uncertainty of when to sell on a high before the tank is far greater than if one had that amount in IE: Total Stock VTSAX, etc.

Sell

Does your advisor charge a fee?
Care to post a portfolio review?

j

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Re: Starbucks; buy, sell, hold?

Post by tea_pirate » Wed Jun 12, 2019 8:22 am

Coffee in general is a pretty saturated market, but I'm not sure how much that will hurt Starbucks. Most of their business seems to be selling sugar and milk to people who don't actually like coffee.

Sell it anyway.

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Re: Starbucks; buy, sell, hold?

Post by Vanguard Fan 1367 » Wed Jun 12, 2019 8:30 am

I made some money with Starbucks stock 10 or more years ago. Now I appreciate the advice of John Bogle and only own Starbucks through the low fee index funds.

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Re: Starbucks; buy, sell, hold?

Post by jabberwockOG » Wed Jun 12, 2019 9:29 am

SBUX -played out at this point.

Since it's only 2% of portfolio sell it and have some fun finding a new potential flyer to invest in. I'd consider putting it into one or two weed companies or a weed fund. Likely there will be a friendly weed shop on every other corner pretty soon.

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Re: Starbucks; buy, sell, hold?

Post by deikel » Wed Jun 12, 2019 11:22 am

9-5 Suited wrote:
Tue Jun 11, 2019 10:42 pm
This is an entire forum built on the premise that no one can answer that question. Funny.
Actually, I think the whole forum is build around the answer: Sell all individual stock (this one being no exception) and buy broad scale funds instead in order to diversify.

For the specific question, I don't see how Starbucks can grow (even bigger) in the future in the US. They are already everywhere in town, show very little innovation beyond what they did 20 years ago and the actual product value (coffee) can be made at home for pennies on the dollar....so they really don't sell coffee, they sell the experience to sit somewhere dry and warm, use the internet and see and be seen.... in principle, I don't like companies selling such a soft 'product' since it might go out of style real quick, its only one generation away from being uncool...I would say they are very similar to McDonalds in that regard

I would sell for both reasons above and count my blessings...and my new shares of a broad market fund I invest them in..
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immediately and destroy any copy or remembrance of it.

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Re: Starbucks; buy, sell, hold?

Post by deikel » Wed Jun 12, 2019 11:26 am

surfstar wrote:
Tue Jun 11, 2019 11:08 pm
If you like Starbucks, buy their coffee (I don't - not just them, but any; make my own for pennies a cup). I wouldn't continue to hold the stock, though.
Fake meat - that's the future!
that's funny, please put this in a time capsule and look at it 30 years from now - I am sure I will still have real meat at that time ...if I make it that long that is...

Most successful new things pale in comparison to the graveyard of cool ideas/products, picking the right one is improbable ...
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immediately and destroy any copy or remembrance of it.

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Re: Starbucks; buy, sell, hold?

Post by arcticpineapplecorp. » Wed Jun 12, 2019 4:43 pm

CoastalWinds wrote:
Tue Jun 11, 2019 9:44 pm
arcticpineapplecorp. wrote:
Tue Jun 11, 2019 8:56 pm
just for fun here's several companies that did poorly over the past 5 years (SEARS, GE, Kodak, JC Penny). I'm sure there are many others. Yeah, I know you want to know about the next 5 years but my crystal ball is cloudy.
Unfortunately, we holders of VTSAX owned these stocks too.
yes but in very small increments (probably less than 2% of our total portfolios). So even though we owned them, we took less risk holding them, than holding them as individual stocks.
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

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Re: Starbucks; buy, sell, hold?

Post by CyclingDuo » Wed Jun 12, 2019 9:07 pm

260chrisb wrote:
Tue Jun 11, 2019 8:06 pm
Anyone hold and have any thoughts on SBUX over the next 3-5 years? It's one of the few individual stocks I own and I bought shares 10 years ago. Needless to say it's done very well. It's about 2% of my retirement holdings and is in a traditional IRA. My advisor has tried to get me to sell it or trim it many times over the years. I love the company and love their products and have for years and think it's still a good long term holding. Their business is consumer driven with addictive and unique products that appeal to nearly every age group above 10. I like it; what say you?
I'd probably hang on to it with that kind of return to date and with it being such a small percentage of your retirement holdings as well as it not being your only individual stock (you mentioned you own a few). Dividends most likely will continue to grow which attracts a certain level of investors.

Coffee (SBUX), drive through burgers & fries (MCD), smokes (MO), booze (BFA), gigantic burritos (CMG), etc... are all items consumerism habits cannot break or seemingly could not get enough of in spite of the costs over the years. The barriers to entry for an ecosystem like Starbucks (customer base, store placement, loyalty rewards and partnerships, plus their excellent app) seems to be in place for continued excellence - albeit the high growth days are over.

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Re: Starbucks; buy, sell, hold?

Post by spectec » Thu Jun 13, 2019 6:20 am

I used to be a daily Starbucks customer, but now I almost never set foot in one. If I owned the stock (which I don't aside from whatever percentage it comprises of VTI), I'd probably take that same view of the stock.
Last edited by spectec on Thu Jun 13, 2019 8:44 am, edited 1 time in total.
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Re: Starbucks; buy, sell, hold?

Post by Dude2 » Thu Jun 13, 2019 8:17 am

Seems to me, and no offense intended, that you decided to pick a stock and you got lucky. You selected one based on your love of the product or an idea that the business had growth potential and longevity. The problem is that your perceptions of the company may have no bearing on the stock price. It all just depends on who's running the company and if they are going to pocket the profits or return them to the shareholders. Professional stock pickers work all the angles. We know nothing. We have no inside information, and as buy and holders we are likely to get caught not following the critical data when we should have been. I'd give it up. Consider your experiment a lucky break.

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260chrisb
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Re: Starbucks; buy, sell, hold?

Post by 260chrisb » Thu Jun 13, 2019 8:24 am

I've enjoyed the replies. Probably need to trim it. Probably won't! :D I just frankly like the company and the holding. It's not "fun Money" as it's in a retirement account and there is no advisor fee to sell all or some. I bought one time, bought in at around $11.00, and it's at $83.00 today. Looking back, I wonder why at the time I didn't add any to my Roth?? :oops:

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Re: Starbucks; buy, sell, hold?

Post by CyclingDuo » Thu Jun 13, 2019 8:40 am

260chrisb wrote:
Thu Jun 13, 2019 8:24 am
I've enjoyed the replies. Probably need to trim it. Probably won't! :D I just frankly like the company and the holding. It's not "fun Money" as it's in a retirement account and there is no advisor fee to sell all or some. I bought one time, bought in at around $11.00, and it's at $83.00 today. Looking back, I wonder why at the time I didn't add any to my Roth?? :oops:
Check out the passively managing individual stocks Wiki here at BH:

https://www.bogleheads.org/wiki/Passive ... ual_stocks

Since you are using a hybrid strategy of index funds and individual stocks, best to be employing good strategies with the individual holdings as well. All the best.
"Everywhere is within walking distance if you have the time." ~ Steven Wright

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260chrisb
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Re: Starbucks; buy, sell, hold?

Post by 260chrisb » Thu Jun 13, 2019 9:24 am

That "hybrid strategy" makes me sound smart!! :wink: Never thought of it that way but I guess it is. This holding, in addition to the few other stocks I hold within this account will never likely exceed 5-6% of retirement assets and over the next 2-3 years will become less of a percentage as the portfolio funds grows, I sell some or all shares of stocks, and at the same time not add more single stocks. Indexing is king and I don't hold any single stocks in my taxable portfolio.

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Re: Starbucks; buy, sell, hold?

Post by blackcat allie » Thu Jun 13, 2019 10:51 am

sambb wrote:
Tue Jun 11, 2019 10:00 pm
SBUX? buy sell hold>

I buy, then i hold, then i drink the coffee. I dont sell it.
☕ Cheers :beer
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Re: Starbucks; buy, sell, hold?

Post by rasta » Thu Jun 13, 2019 11:32 am

Sandtrap wrote:
Wed Jun 12, 2019 8:18 am
IMHO that's too many eggs in one basket.
Unless it is "play money" and disposable.
Why?
Because you don't know if it's going to be the next PG&E, Radio Shack, Sears, and the uncertainty of when to sell on a high before the tank is far greater than if one had that amount in IE: Total Stock VTSAX, etc.

Sell

Does your advisor charge a fee?
Care to post a portfolio review?

j
So 2% is too many eggs in one basket?

if i hold msft, aapl, amzn and goog in my individual stock portfolio each at equal weights of 2.5%, is that too many eggs in one basket as well?

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Re: Starbucks; buy, sell, hold?

Post by Jack FFR1846 » Thu Jun 13, 2019 11:45 am

At my office, we have a Keurig machine and free coffee including Starbucks and Dunkin Donuts. I always get the Dunkin Donuts french roast. To me, Starbucks tastes like battery acid. I'd sell with extreme prejudice.
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Re: Starbucks; buy, sell, hold?

Post by abuss368 » Thu Jun 13, 2019 8:26 pm

260chrisb wrote:
Tue Jun 11, 2019 8:06 pm
Anyone hold and have any thoughts on SBUX over the next 3-5 years? It's one of the few individual stocks I own and I bought shares 10 years ago. Needless to say it's done very well. It's about 2% of my retirement holdings and is in a traditional IRA. My advisor has tried to get me to sell it or trim it many times over the years. I love the company and love their products and have for years and think it's still a good long term holding. Their business is consumer driven with addictive and unique products that appeal to nearly every age group above 10. I like it; what say you?
Your guess is as good as anyone's! No one knows in advance. If you achieve the same return as a Total Stock Index fund you are much worse off from the standpoint of the increased risk you are assuming. Jack Bogle has often said that no one should own individual stocks.

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Re: Starbucks; buy, sell, hold?

Post by 7eight9 » Thu Jun 13, 2019 8:51 pm

I have no idea what the future holds for Starbucks. That said, I'm not so sure that I would bet against it.

Last week I went to a Starbucks to meet some former coworkers. This was the first time that I had been to a Starbucks since 2006. Had they not wanted to meet there I would not have gone. The last time I went to a Starbucks I was humiliated in public by the clerk. I asked for a large coffee, cream, one sugar. He queried "Venti, grande, something else blah blah blah." I replied that I just wanted a large coffee, cream, one sugar. We repeated this little game several times. Then it went on to what kind coffee did I want. Americano? Something else? All I wanted was a large coffee, cream, one sugar. Pretty simple order in my opinion. Obviously I wasn't knowledgeable in their secret vocabulary. Just give me the coffee and quit your little power trip. Anyway, a most miserable experience. People behind me were laughing at me. I wrote to Corporate and never received an apology or for that matter even an answer.

I digress. When I was at Starbucks last week it was continuously busy from 8:30am to 10:30am. I don't know about other times, but this particular location seemed to have a thriving business. And given that they charged nearly $3.00 for a large coffee (they added one sugar - I had to add the cream myself) it would seem that their profit margins are probably pretty solid.

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Re: Starbucks; buy, sell, hold?

Post by nedsaid » Thu Jun 13, 2019 8:57 pm

I don't follow Starbucks as a stock so I have no opinion. What I will say is that they got in really early in the fancy coffee craze. I remember when your only choices for coffee were black or with cream and sugar. They took what had been invented in Italy and took it worldwide. Starbucks are all over the world. There is now lots of competition, everyone and his brother serves the fancy coffees that I can't spell or pronounce. You have to ask yourself how much growth potential is here. They can get growth by taking market share or by expanding their product line. The things they might expand into also have lots of competition.
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Re: Starbucks; buy, sell, hold?

Post by abuss368 » Thu Jun 13, 2019 10:18 pm

Have enjoyed the products over the years. Would I invest in the stock? No for the risk reasons noted above.

You would be wise to own a few total market index funds.
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Re: Starbucks; buy, sell, hold?

Post by BionicBillWalsh » Thu Jun 13, 2019 10:28 pm

I’ve experienced gains of 80% with SBUX. They are one of the most recognized brands in the world. Their product is addictive and legal.

They have the vast majority of quality coffee beans that are harvested worldwide. There is truly a moat around their business model .

I think I’ll continue to hold on to SBUX for a very long time. They are the only single, dividend stock that I own.

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Re: Starbucks; buy, sell, hold?

Post by Thegame14 » Thu Jun 13, 2019 11:13 pm

Rudedog wrote:
Tue Jun 11, 2019 8:55 pm
I have purchased Starbucks coffee in the past, there is one on almost every street corner in Chicago. However, I much prefer "dark roast" coffee from local coffee shops, local roasters. However, the local Starbucks always seems to be busy. You may want to consider reducing your position a bit.
every day starbucks has a different brew every day, you want coffees from Africa vs coffee from latin america, look for their sumatra blend, that is a dark roast.

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Re: Starbucks; buy, sell, hold?

Post by aristotelian » Fri Jun 14, 2019 1:42 am

Holding stocks in traditional IRA makes zero sense and there is no tax consequence to selling. Therefore, you should sell the shares in your IRA. Then ask yourself if you want to buy SBUX with cash in your brokerage account.

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Re: Starbucks; buy, sell, hold?

Post by donfairplay » Fri Jun 14, 2019 3:28 am

I vote hold. Or HODL (Hold On for Dear Life)

Starbucks may have hit saturation in the US, but they're booming everywhere else - they're opening a new store in China every 15 hours and plan to continue that for the next 4-5 years.

Plus, you're up 30% YTD; 46% 1-year. And you bought in 10 years ago, so approximately +1,000%; maybe you should be giving us individual stock advice instead.

The PE ratio is not out of line with the category, Yum Brands is slightly cheaper with a comparable dividend. If you want an overvalued retail restaurant, try Chipotle. If you want an overvalued restaurant company with an unmaintanable dividend (paying out more than cash flow) and a stock in decline, try Brinker International.

There are many reasons to think the retail-apocalypse will affect, or should I say infect, the category. IMO, the chain restaurants go first (CAKE, EAT, maybe DRI) and the affordable luxury category killers like SBUX keep ticking along. Fast food goes last, if you're MCD, which makes more money off real estate than food anyway.
Last edited by donfairplay on Fri Jun 14, 2019 3:37 am, edited 1 time in total.

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Re: Starbucks; buy, sell, hold?

Post by PoultryMan » Fri Jun 14, 2019 3:35 am

9-5 Suited wrote:
Tue Jun 11, 2019 10:42 pm
This is an entire forum built on the premise that no one can answer that question. Funny.
I thought this was a forum built on the investing wisdom of Jack Bogle. I also thought JB thought nobody knew how to beat the market, so own the market.

I believe he counseled those who wanted to own individual stocks (funny money), not to own more than 5% of their total funds in individual stocks.

P.s. I wouldn’t be shocked if JB”s estate owned a small share of Berkshire but less than 5% :D

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Re: Starbucks; buy, sell, hold?

Post by SGM » Sat Jun 15, 2019 4:00 am

I find that Starbucks is often the only place open where I can get a quick snack or lunch on a Sunday in certain city neighborhoods. It is also a meeting place for lots of people and opens earlier in the am then most meeting places. The lines later in the day on the NJ turnpike are huge any day of the week. I don't think the regular coffee tastes very good. I suspect it will continue to fill a need and do well. They also seem to be expanding overseas still.

I don't own any Starbucks outside of my index funds. If I did I would likely sell enough to keep it less than 1% of my portfolio. I have long held stocks in my taxable account that I trim back a little bit each year, but they all have large capital gains so I only sell a small amount every year to avoid too large a tax hit.

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Re: Starbucks; buy, sell, hold?

Post by 3funder » Sat Jun 15, 2019 6:25 am

7eight9 wrote:
Thu Jun 13, 2019 8:51 pm
I have no idea what the future holds for Starbucks. That said, I'm not so sure that I would bet against it.

Last week I went to a Starbucks to meet some former coworkers. This was the first time that I had been to a Starbucks since 2006. Had they not wanted to meet there I would not have gone. The last time I went to a Starbucks I was humiliated in public by the clerk. I asked for a large coffee, cream, one sugar. He queried "Venti, grande, something else blah blah blah." I replied that I just wanted a large coffee, cream, one sugar. We repeated this little game several times. Then it went on to what kind coffee did I want. Americano? Something else? All I wanted was a large coffee, cream, one sugar. Pretty simple order in my opinion. Obviously I wasn't knowledgeable in their secret vocabulary. Just give me the coffee and quit your little power trip. Anyway, a most miserable experience. People behind me were laughing at me. I wrote to Corporate and never received an apology or for that matter even an answer.

I digress. When I was at Starbucks last week it was continuously busy from 8:30am to 10:30am. I don't know about other times, but this particular location seemed to have a thriving business. And given that they charged nearly $3.00 for a large coffee (they added one sugar - I had to add the cream myself) it would seem that their profit margins are probably pretty solid.
Your experience reminds me of Dennis Leary's rant about the lack of coffee-flavored coffee offered these days. Google it. Totally hilarious.

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Re: Starbucks; buy, sell, hold?

Post by BFive55 » Sat Jun 15, 2019 7:47 am

ThankYouJack wrote:
Tue Jun 11, 2019 8:16 pm
I think Starbucks coffee is overrated and as coffee becomes bigger, I think local roasters will become even more popular. Sort of like beer, with microbreweries in the last decade or so.

I'm not sure about the stock. If you're torn, maybe sell half your holding - then you'll be right one way or the other :)
Kind of an ironic statement... because a lot of smaller brands are owned by big labels. A lot of beer companies recognized the growing popularity of craft brews and bought many of the more popular local or regional companies.

spectec
Posts: 1387
Joined: Mon Jul 14, 2014 8:00 am

Re: Starbucks; buy, sell, hold?

Post by spectec » Sat Jun 15, 2019 9:14 am

3funder wrote:
Sat Jun 15, 2019 6:25 am
7eight9 wrote:
Thu Jun 13, 2019 8:51 pm
I have no idea what the future holds for Starbucks. That said, I'm not so sure that I would bet against it.

Last week I went to a Starbucks to meet some former coworkers. This was the first time that I had been to a Starbucks since 2006. Had they not wanted to meet there I would not have gone. The last time I went to a Starbucks I was humiliated in public by the clerk. I asked for a large coffee, cream, one sugar. He queried "Venti, grande, something else blah blah blah." I replied that I just wanted a large coffee, cream, one sugar. We repeated this little game several times. Then it went on to what kind coffee did I want. Americano? Something else? All I wanted was a large coffee, cream, one sugar. Pretty simple order in my opinion. Obviously I wasn't knowledgeable in their secret vocabulary. Just give me the coffee and quit your little power trip. Anyway, a most miserable experience. People behind me were laughing at me. I wrote to Corporate and never received an apology or for that matter even an answer.

I digress. When I was at Starbucks last week it was continuously busy from 8:30am to 10:30am. I don't know about other times, but this particular location seemed to have a thriving business. And given that they charged nearly $3.00 for a large coffee (they added one sugar - I had to add the cream myself) it would seem that their profit margins are probably pretty solid.
Your experience reminds me of Dennis Leary's rant about the lack of coffee-flavored coffee offered these days. Google it. Totally hilarious.
This reminds me of my father-in-law, who always loved strong coffee. Sam would often add a spoonful of instant coffee to a cup of brewed coffee, usually while saying "It doesn't take nearly as much water to make coffee as most people think it does." :)
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

ChrisC
Posts: 774
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Location: North Carolina

Re: Starbucks; buy, sell, hold?

Post by ChrisC » Sat Jun 15, 2019 2:29 pm

I've skimmed through most of these posts, but the idea mentioned by some that Starbucks growth is limited in the foreseeable future downplays the enormous international growth potential it has in BRIC nations, especially China where it has a major foothold. Interestingly, the other day, a few of the Half-Time report commentators on CNBC were recommending shorting the stock over the next few months, especially since the stock has experienced major upside recently.

I'm not a true BH, and will never be one, as I do own individual stocks and investment real estate; nonetheless, I have been closing out some individual stocks in favor of passively managed, indexed funds. I got rid of a block of Microsoft shares in 2012 after I experienced major growth from owning it over more than 2 decades. I suspect that since then my shares in Microsoft would have outpreformed the index funds I purchased with the proceeds of closing that position. But I'm not looking back and closing out individual stocks provides me with better peace of mind.

We own a large block of Starbucks shares, and our connection with the company is a lot more about brand loyalty than sound investment decisions. We've owned Starbucks for more than 2 decades and the growth has been phenomenal for us, now constituting 10% of our investment portfolio; we now think it's time to take some profits from Starbucks, which is now entirely in a Roth IRA -- we converted the last block of shares we owned in a tIRA last year and moved it over to the Roth, which jacked up our tax brackets and IRMAA levels, but it was a good move for us.

We'll likely sell half of our position this year, and likely deploy the proceeds to an index fund.

Broken Man 1999
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Re: Starbucks; buy, sell, hold?

Post by Broken Man 1999 » Sat Jun 15, 2019 3:34 pm

I made some money on Starbucks when I bought for single digits during the great recession.

The shares split once, and I sold all in the $50+ range.

I'm not sure I would buy Starbucks at the current price, in fact if I had any that I had held for a long period of time I would be selling.

I always have been willing to sell when I made good money.

I firmly believe the saying, "Bulls make money, bears make money, and pigs get slaughtered".

It has guided me successfully thus far.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

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