It is ironic that I wrote a post about Starbucks not too long ago and I picked up shares of the stock given the huge negative reaction to the recent earnings miss. Keep in mind that I only bought 30 shares to open a position and I will accumulate if it goes down further and I will DRIP the shares so that it grows over time. With 30 shares and a $0.57/dividend per quarter I’ll be able to buy $17 worth of coffee per quarter!
I have been watching Starbucks for a good entry point since I missed the May 2022 low and I think now is a good time to start a position. The video below is from FastGraphs which walks through the rationale for value investing on stocks during downturns.
There is no guarantee that Starbucks won’t further deteriorate but I plan on holding this stock for 10 years or longer so it won’t matter too much to me. There was an article on Investors Business Daily suggesting that Starbucks earnings miss is a harbinger of a tapped out consumer and I think it’s entirely plausible and I’m hopeful I can accumulate more shares as this stock declines for the long term.
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What are you buying in this deteriorating economy?