A low risk investment you can virtually buy and forget like Starbucks when it listed: $1,000 invested then is now worth $201,901.18—a hard to believe return of 202 times your money
Why does Starbucks have more stores than any other coffee company, and not Peet’s (with a 20-year head start on Starbucks), Seattle’s Best, or someone else?
What turned the “upstart” discounter Wal-Mart from America’s boondocks into the world’s most profitable retailer? And how come Kmart and Target, which both opened before Wal-Mart, aren’t even in the race for the #2 and #3 spots (occupied by France’s Carrefour and Britain’s Tesco respectively)?
How did McDonald’s gain the “First Mover” advantage to become the world’s biggest hamburger chain while Burger King, with a two-year head start, lost theirs? And why was Whole Foods, of the hundreds of specialty grocers in the United States when it opened its doors, the one that grew to dominate its market?
What, to summarize, are the crucial differences that make the difference, that made Starbucks, McDonalds, Wal-Mart, Whole Foods and their ilk tower above their many competitors?
The 5 Clues to Spotting the Next Starbucks
By comparing Starbucks’ pattern of growth to other high-growth companies we can single out the five significant factors they all have in common:
- They Permanently Change People’s Habits: How many Americans had heard of a $4 latte, let alone drunk one, before Starbucks came along?
- They’re Copycats: Ray Kroc duplicated the original McDonald brothers’ store worldwide—lock, stock, and barrel.
- Their Success is Validated by Competition: There are thousands of Starbucks, McDonald’s, Wal-Mart, and Whole Foods “clones” around the world—with more opening just about every day. Competition validates the founder’s concept, and demonstrates that the potential size of the market is enormous. A company that does not inspire competition is destined to serve a small market niche.
- They’re Driven by the Founder’s Vision and Passion: A company whose management doesn’t inspire its employees won’t inspire—and keep—its customers. The founders of Starbucks (Howard Shultz), Whole Foods (John Mackey), Wal-Mart (Sam Walton), and McDonald’s (Ray Kroc) all successfully transmitted their vision and passion throughout their companies, translating each of them into a unique customer experience.
- They have Superb Management and Execution: Thousands of good to great businesses share the above four characteristics, but without superb management and execution they’re destined to remain small, or even one-man bands.
None of these factors are unique to any growth company. But when you find all five together in one company, you can be pretty confident you’ve found a great candidate for the next high-growth stock.
But how can you, as an “average-investor-in-the-street,” find such a hot growth stock? Especially when you have no access to top management, no “insider information” and no hope of getting any, and would rather go to Starbucks than read its annual report?
In How to Spot the Next Starbucks, Whole Foods, Walmart or McDonald’s BEFORE its Shares Explode You’ll Also Discover—
- Two ways you could spot the next Starbucks by “just walking around”
- How you can apply the “5 clues” to dig up hidden gems and get ahead of the Wall Street “experts”—from the comfort of your own home
- Four completely different ways to profit from the next hot growth stock—or the last one
- Three simple indicators you can use to cross the “Next Turkey” off your list
- How to weed out the dross by “reading between the lines” of a company’s annual report—even if the last thing you want to do is take Accounting 101!
- Most importantly of all, you’ll discover how to pinpoint a high growth company that’s also a long-term, low-risk investment you can sock away in your pension plan and pretty much forget about (until you want to retire to Florida or the south of France).