If you are a regular reader of the site, you’re probably not trying to answer the question “how can I make as much money, as fast as I can, at any cost”, but rather, you’re probably after a satisfactory investing strategy that answers the following question: “How can I craft an investing strategy that will not only provide sustainable gains for the long haul, while also doing it in a style that will leave me generally content and allow me to live without regrets?”
The answer to that question is a two-step process; the first simply involves thinking about the long term in the first place. To paraphrase Seth Klarman—the greatest advantage that … Read the rest of this article!
On June 26, 1992, Starbucks’ stock (SBUX) began trading 2.1 million shares on the public market at a price of $17 per share. The stock has had six 2-for-1 stock splits since its IPO, so the IPO price was really around $1.40 per share. Twenty-seven years later, Starbucks’ stock now pays out more in annual dividends than the cost of purchasing the stock. Invest $1,000 in Starbucks stock in 1992? You get over $1,000 in dividends today. Also, your $1,000 investment would have grown to $82,000 due to a combination of capital appreciation and dividends paid out.
Of course, the most important question to figure out is what signal identified Starbucks as a … Read the rest of this article!