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Tuesday, August 11, 2009

Starbucks Addicts

In my opinion, there are 3 types of addictions people have in this world: drugs, alcohol, and coffee from Starbucks.

I initially made my purchase of Starbucks in December 2008 because I learned that the original founder, Howard Shultz, was returning to the company as CEO. This was the same strategy that worked with my Schwab (NYSE:SCHW) investment when Charles Schwab himself returned to the helm.

So Mr. Shultz immediately came back with guns blazing: shutting down around 600 underperforming stores, reducing staff, adding new drinks (my personal favorite is the Chocolate-Banana Vivanno), and buying new coffee technology like the Clover which is a fancy coffee maker designed by Stanford Engineers. Today I'm still sitting on my Starbucks (NYSE: SBUX) investment and will continue to be "married" to the company, as Warren Buffet likes to say, until Mr. Shultz decides its time to step down once again.

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