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Altrius Capital Blog

Brady T. Gingrich

Recent Posts

14 Aug 2018

Starbucks: A Case Study for Our Disciplined Process

Posted by Brady T. Gingrich

On more than one occasion in recent years clients have written us about investing in Starbucks, the trendy coffee chain with locations in seemingly every city and town across the United States. Though Starbucks is the coffee shop of choice for some of us at Altrius, we believe that mistaking a company for the products it sells can trap investors into overpaying for its shares (for more on this, head over to our McDonald's vs. Shake Shack blog post) and have thought it expensive until recently. Previously trading at over 30 times trailing earnings with a dividend yield of around 1.5% - less than half that of our Disciplined Alpha Dividend strategy - Starbucks has remained outside of our value discipline in past years. However, the company caught our attention after a recent selloff and we added it to our portfolios in early August.

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Topics: Investing, Long Term Investment