up one level


(Not) Choosing a Stock Investment (in Starbucks Stock) Based on Emotion

By w̶i̶e̶l̶d̶l̶i̶n̶u̶x̶.̶c̶o̶m̶ author Morgan Jassen

As a beginner investor, I want to choose a stock. my arbitrary goal this year will be to save enough by the end of the year to buy 10 shares of Starbucks stock(SBUX). This will be a stretch to save enough money to do it. But I need a concrete goal, so that's it.

My reason for choosing that stock is a bit emotional. I've heard it is a bad idea (investing on emotion is a bad idea, that is.)

I spent money on Starbucks coffee over the years. And I like it and I like the brand. I haven't looked over starbucks financial information much though. So all I know about the company is from having been a customer.

However I did look into dividend history and it looks like in the last 11 quarters, they paid a quarterly dividend of between $.13 and $.20. But what does that mean? $.13 per share? or ...?

So I guess that gives me a lot of homework to do -- I should look more into the company and the news around the company that I want to invest.

And also check out some more companies. I'll plan to first look at companies other than Starbucks, see how they compare based on some objective numbers like dividend history and stock price change. And so I can invest in the one that is the most financially smart.

In conclusion, as a beginner investor, it's tempting to use emotion to choose what company stock to invest. However from common sense and from reading it somewhere, I'm going to instead do some homework and reseach to make an objective choice what company stock to invest.

Disclaimer: I may be investing in SBUX and any company mentioned above by the time this blog post is published. The reader of this blog post should, before investing, perform their own independent research as appropriate. The contents of this blog post are general information from one individual's perspective; I'm not recommending how anyone else should invest.

Tags: #investing

[2019 edit: Moved to: https://investorworker.com/2016/... .html.]