In my Starbucks (SBUX) guest post at Dividend Power I explain why there is not a chance that I would invest in the company.
Starbucks' (SBUX) investors have been rewarded with an annual rate of return in the upper teens if shares were acquired at the end of August 1995 and never sold. It is a very different story if shares were acquired at the end of August
- 2005 - annual rate of return drops to the low teens.
- 2015 - annual rate of return drops to the high single digits.
- 2020 - annual rate of return drops to the low single digits.
- 2023 - annual rate of return is a negative low single digits.
These returns are AFTER, in an act of desperation, SBUX's August 13, 2024 announcement of the appointment of a new Chairman and CEO effective September 9.
In several prior posts I indicate my desire to acquire shares in high quality companies experiencing temporary challenges. SBUX is certainly experiencing challenges but I do not consider it to be a high quality company. I think SBUX investors who recently bid up the share price because of the recent announcement of a change in CEO are being overly optimistic.
I wish you much success on your journey to financial freedom!
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Disclosure: I do not have SBUX exposure and have no intention of initiating a position.
Disclaimer: I do not know your circumstances and do not provide individualized advice or recommendations. I encourage you to make investment decisions by conducting your research and due diligence. Consult your financial advisor about your specific situation. I wrote this article myself and it expresses my own opinions. I do not receive compensation for it and have no business relationship with any company mentioned in this article.
