tag:blogger.com,1999:blog-6587699706949333863.post5317620204931798559..comments2024-03-27T23:39:33.499-05:00Comments on Passive Income Pursuit: Did I Really Buy a Company For 470 Times Earnings?Passive Income Pursuithttp://www.blogger.com/profile/13947101854482544346noreply@blogger.comBlogger22125tag:blogger.com,1999:blog-6587699706949333863.post-77265808636021675352014-04-29T21:09:57.637-05:002014-04-29T21:09:57.637-05:00Marvin,
I'd love to get my own wall of troph...Marvin, <br /><br />I'd love to get my own wall of trophies in my office at the house! I'm definitely looking to add to this position as well as plenty of others. Of course the problem I'm going to face is buying to early on the way down and not blowing through my capital too early.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-3986870282103674402014-04-29T21:08:23.512-05:002014-04-29T21:08:23.512-05:00AAI,
Well, at least you're funding my divide...AAI, <br /><br />Well, at least you're funding my dividend payments now. So it's not a total loss. That was a pretty interesting time to be investing and based on the time frame it was probably completely justified. Even though I try to ignore the financial media it's hard to escape it when every place you turn the global economy is going to collapse. Live and learn and I've made my fair share. As long as you learn from it then I consider it just a great lesson. <br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-69901468948346966592014-04-29T21:04:53.336-05:002014-04-29T21:04:53.336-05:00DBF,
It's a whole other set of issues but fr...DBF, <br /><br />It's a whole other set of issues but from what I've read it's going to just be select stores where there's already a night crowd. My wife much prefers to use the mobile payment when she goes to SBUX and I think more and more people will start that shift. If SBUX truly can expand into providing support or running mobile payments platforms for other companies that'll be huge.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-75847155088891356212014-04-29T21:01:22.216-05:002014-04-29T21:01:22.216-05:00WE,
I know a 470 P/E seems to go against a value...WE, <br /><br />I know a 470 P/E seems to go against a value/DG strategy but this is definitely a special situation. <br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-80406076371182142592014-04-29T21:00:30.672-05:002014-04-29T21:00:30.672-05:00J.A.,
Another one that I want to own is DIS, tha...J.A., <br /><br />Another one that I want to own is DIS, that company is a beast. I wouldn't mind getting MA to go with my V position and UNP has been on my radar as well.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-62059995408399815122014-04-29T20:59:02.949-05:002014-04-29T20:59:02.949-05:00Ryan,
I think SBUX just about everywhere is pack...Ryan, <br /><br />I think SBUX just about everywhere is packed with long lines. I'm not sure if they are still open but at one point in downtown Houston there were two SBUX stores open across the street from each other, and they both had lines. That's a good sign. I'm not a fan of coffee/tea but I might buy my wife one with the first payment which I'll get to receive since they go ex-div on 5/6 I think. <br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-36890667205251218282014-04-29T20:56:18.863-05:002014-04-29T20:56:18.863-05:00CI,
You mean they aren't going to grow almos...CI, <br /><br />You mean they aren't going to grow almost 1,800% in one year? I prefer forward P/E to TTM P/E for the same reason. There's not those one-time charges baked into the forward looking P/E. Although I really prefer looking as cash flow because it's less susceptible to accounting trickery.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-39762875787650845122014-04-29T20:53:27.722-05:002014-04-29T20:53:27.722-05:00DM,
It's a GARP stock for sure because it...DM, <br /><br />It's a GARP stock for sure because it's not cheap on just about any metric. But I think there's a huge tailwind for the company and there's a lot of growth opportunities with Teavana, expansion of food offerings, wine/alcohol, mobile payments, and of course there's still the core coffee business. I think there might be some more short term weakness but that's fine by me.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-65201066540625646632014-04-29T20:51:28.751-05:002014-04-29T20:51:28.751-05:00ILG,
470 P/E is cheap right? Most of the time o...ILG, <br /><br />470 P/E is cheap right? Most of the time one-time charges aren't significant enough to cause disparities like this so I'll use the EPS and P/E as reported. But every now and then you'll find situations like this where there's obviously something out of whack. I also focus more on cash flow while analyzing companies.<br /><br />Even though I'm hoping to reach FI relatively quickly the lower yielding/higher growth companies with long-term tailwinds have a place in my portfolio. That's why I own V too and almost added to my position yesterday as well.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-87933425917003473692014-04-29T20:48:06.105-05:002014-04-29T20:48:06.105-05:00Gareth,
I think it was last week when it dipped ...Gareth, <br /><br />I think it was last week when it dipped below $70 and I should have bought then. The company is great and people have to have their SBUX fix even though to me it's pretty darn expensive. Almost all the SBUX locations I ever drive by are always packed. Sometimes it's as simple as seeing people continually shopping somewhere. I just wish I had jumped on this one before now. <br /><br />How's Loyal3 going? I'm thinking of starting up and account to DCA into some positions and earn some cash back too.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-73203181439452664622014-04-29T20:08:52.716-05:002014-04-29T20:08:52.716-05:00You and me both!!!! I'm anxiously waiting for ...You and me both!!!! I'm anxiously waiting for the next crash JC so I can get in on what I consider Trophy Assets!Marvinhttp://www.brickbybrickinvesting.comnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-40980305515188399962014-04-29T16:25:18.328-05:002014-04-29T16:25:18.328-05:00I'm still kicking myself for buying Starbucks ...I'm still kicking myself for buying Starbucks in the '08/'09 time frame and selling after a $5 move to about $15/share. This was well before I was a DG or buy and hold investor. You live and you learn. I am at Starbucks at least 3-4 times per week for espresso or breakfast sandwiches. They make a good product!All About Interesthttps://www.blogger.com/profile/13412467028446944315noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-390889494760969622014-04-29T11:33:47.988-05:002014-04-29T11:33:47.988-05:00I had no idea that they were considering selling a...I had no idea that they were considering selling alcohol in their stores. I'm not sure how that'll pan out, but mobile payments could be a huge boon. Done By Fortyhttps://www.blogger.com/profile/06246597867355460723noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-62595746607082616952014-04-29T10:46:09.159-05:002014-04-29T10:46:09.159-05:00Nice shock title. I'm wonder how many people w...Nice shock title. I'm wonder how many people will skim the relevant info and miss the point :OWallet Engineershttps://www.blogger.com/profile/04116295538595677882noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-17716344455130293052014-04-29T08:25:32.600-05:002014-04-29T08:25:32.600-05:00JC, Most of my DGI stocks are low yielding growth ...JC, Most of my DGI stocks are low yielding growth stocks with double digit dividend raises such as SBUX, MA, TROW, UNP, GWW, NKE....so I obviously agree with owning Starbucks. Good stucff as usual.<br /><br />Regards,<br /><br />JoeJ. A. Saglimbenihttps://www.blogger.com/profile/05299555249487056163noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-64708513440370253472014-04-28T23:14:40.326-05:002014-04-28T23:14:40.326-05:00JC,
Really like this pick! Starbucks in LA is al...JC,<br /><br />Really like this pick! Starbucks in LA is always packed with long lines. On special occasions I treat myself to a soy chai tea latte with 2 shots of espresso. I suggest you buy one with the first dividend to celebrate. You can for sure look forward to lots of growth from here. <br /><br />Keep marching toward those goals, you're getting closer.Ryanhttp://www.mydividendgrowth.comnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-46758714272080698462014-04-28T22:02:54.495-05:002014-04-28T22:02:54.495-05:00Trailing twelve month p/e is often misleading, you...Trailing twelve month p/e is often misleading, you're on to something! Ttm p/e is a quick metric plastered all over every finance site, but includes all kinds of one time events (both positive and negative) that will not affect a business moving forward. Using ttm p/e means I would have to scour earnings reports for about ~70 companies to figure out extraordinary events. No thanks. I decided to save myself some time and just use the forward p/e. Forward p/e isn't perfect, but only requires one additional click on my part.<br /><br />Best wishes with your SBUX investment, hope it continues to grow!Compounding Incomehttps://www.blogger.com/profile/04207986983526689578noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-67334494010615365342014-04-28T20:26:00.541-05:002014-04-28T20:26:00.541-05:00Pursuit,
I'll have to give SBUX a serious loo...Pursuit,<br /><br />I'll have to give SBUX a serious look here soon. Agreed that it's not cheap no matter how you slice it, but if it does appear reasonably priced factoring in the expected growth. <br /><br />Best wishes!Dividend Mantrahttp://www.dividendmantra.comnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-32150488632083546422014-04-28T19:51:44.893-05:002014-04-28T19:51:44.893-05:00HaHa. I saw the same PE as I was combing through t...HaHa. I saw the same PE as I was combing through the Loyal3 dividend stocks. This is the reason I don't like using the PE. It can be affected by many variables that don't necessarily affect the business. This is an example of using an Accounting idea for purposes of finance. I much prefer cash flow. <br /><br />SBUX is a good purchase. I owned it for several years, but sold it due to the size of the yield. Now that I have a little more XP under my belt if DGI, I think I am going to look for some lower yielding yet high growth stocks. FDO also comes to mind here. InvestLikeGrampahttps://www.blogger.com/profile/12342607548407246637noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-13912634665878199322014-04-28T18:05:44.419-05:002014-04-28T18:05:44.419-05:00I think this is a good buy JC. It's been on my...I think this is a good buy JC. It's been on my radar for some time now and with Loyal3 I have a chance to put small amounts to use. I'll probably be joining you soon as a stockholder of SBUX. The Starbucks just down the street from where I live is constantly packed with customers - women, men, old people, young people and everyone in-between. The general public love this company!Gareth @ Investment Road to Freedomhttp://investmentroadtofreedom.com/noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-71686076816203095752014-04-28T17:26:00.933-05:002014-04-28T17:26:00.933-05:00R2R,
I really like SBUX for the long-term growth ...R2R,<br /><br />I really like SBUX for the long-term growth prospects of the company and most importantly to me the dividend. I just wish I had bought during the depths of the financial crisis when it was down in the teens. It's not the best price but it's nowhere near a full position yet so there's still room to add to my position if we can get a pullback in the markets.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-72594503410993290932014-04-28T13:57:49.609-05:002014-04-28T13:57:49.609-05:00Good call JC. I love the long term prospects of SB...Good call JC. I love the long term prospects of SBUX and want to it add to my portfolio. Keeping an eye on it....like you said, its a fair valuation at current levels and the huge P/E number due to one-time cost is probably throwing people off with their screeners and filters.<br /><br />Best wishes<br />R2RRoadmap2Retirehttps://www.blogger.com/profile/14379818667071736766noreply@blogger.com