30 Mar Starbucks: Your local drug dealer
I was in a Starbucks recently looking for a place to do some work and found it packed full of people on a Tuesday afternoon. I was thinking how it must be just so extremely profitable to own a coffee shop, like “Starbucks”. They sell a powerful drug, called coffee (yes, it’s my crack too…) with an addictive ingredient known as caffeine which people will keep coming back for more. So I started thinking outside the box that investors should always be looking to invest in companies that produce a product or service that they just can’t live without (once they’re hooked, of course). Obviously, coffee is one; Cigarettes are another; Gambling; Shoes… (man… Yeah, women and their heels… why don’t we just break the bank…). Companies who sell an addictive product or service will always be in high demand regardless of the economic situation.