Topic: How To Invest

What is Pat’s commentary for the week of February 16, 2021

Article Excerpt

Starbucks has been a great performer for us since we first recommended it at $15.68 a share (adjusted for a 2-for-1 split). That was in the April 2, 2007, edition of our Advice for Inner Circle Members service. The stock has gone through some wild swings in the nearly 14 years since then. It slumped to $3.59 in November 2008, a low it hit just a few weeks before the end of the 2007-2009 bear market. The stock is now trading just below the all-time high of $107.75 it hit recently on January 4, 2021. Today’s price gives holders a gain of 579.2% since 2007—and that’s not even counting the dividend income you’ve collected along the way. The pandemic has accelerated the company’s shift from sit-in dining to pickup-only and drive-thru locations. COVID-19 also continues to prompt more users to sign up for Starbucks’ mobile ordering app. In addition to higher sales, both of these factors will cut its operating costs. We…

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