Investing in the Coffee Giant: Starbucks
Last time on this blog, I sold all of my stocks from JYP Entertainment. My first investment ended up bringing 70% in revenue, which I am greatly grateful for. As of now because I don't see any good opportunities in the South Korean stock market, I have decided to start investing in the American stock market.
I initially hoped to invest in the hotel or airline industry because of their huge stock decline due to COVID-19 but changed my mind as I am still inexperienced in this field. As of now, the giant tech stocks seem to be overpriced as the summer stock rise has made them out of reach for a high school trader.
Hence, I decided on investing in the food industry. I originally planned on investing in McDonald's stocks as they had a nice valuation at approximately $190. However, while setting up eBest Mobile into the international platform where I can trade stocks from companies in America, China, and Hong Kong, I lost my chance and McDonald's stocks went up to 200-210 dollars.
As a result, I decided to settle on Starbucks. Although it has pretty much a monopoly on the coffee retailing industry, it seems to have a low valuation in the general food industry. Most stocks (at least for the bigger companies) in that industry are valued at the low $100s but Starbucks is currently in the mid $70s.
I have decided to invest in this stock as a conclusion. I bought it on the 7th of August at $75.
Please contact me if you have any comments!
Photo from: https://www.logoworks.com/blog/siren-starbucks-logo-design/