Before you make any investment, you need to do a proper analysis
In this video below, I show you the type of fundamental research I like to do on a stock before trading an investing it.
I use Starbucks (ticker symbol SBUX) as an example because it's a well-known company and one I get asked about often.
I even try and visit the different types of stores in order to "check up" on my investment.
Check it out...
Initial Analysis
One thing I like about SBUX is the timing.
The world is starting to open back up from the pandemic, and if people are going back to work then they are going to need their morning coffee on the way.
If it survived during the pandemic on drive-thrus and take-out, think of what it can do now with the world opened back up.
For the most part, you will not hear bad news about Starbucks on the news, which means it is a pretty safe investment.
Make Sure You Diversify Your Portfolio
It's important to keep in mind that no matter how "safe" your stock and company may seem, you need to diversify your account.
Meaning, if I invest in SBUX I won't put all of my cash into restaurants.
I would even it out with maybe some tech stocks, etc.
That's one mistake I see newer traders make, and I want to ensure you avoid it.
