Buy Starbucks shares - how to invest in Starbucks shares in the Philippines

Investing in stocks is an increasingly popular activity around the world. If earlier investing was the sphere of interests of exclusively rich people, then it is available to the broad masses of people with an average income level.

These days, to become an investor, you don't have to be a millionaire and live in New York or Paris. You can live in the most remote corner of the Philippines and have the initial few dollars to become a successful investor in the future. Sounds awesome, but it really is.

In this short article, we'll take a look at investing in Starbucks stock in the Philippines. Let's consider the option of buying stocks online, understand what an online investment platform is and what to look for when buying stocks through an online broker.

Starbucks

Starbucks Corporation is one of the biggest catering chains in the US. These cafés are in good demand not only by American diners, but also by consumers from other parts of the world. The significant size of revenues and profits makes the US issuer's securities an attractive stock market asset for many stock market participants. A large number of investment funds and other organisations in the collective investment sector are active in Starbucks shares.

Starbucks Corporation was founded in 1971. English teacher Jerry Baldwin, history teacher Zev Siegl‎ and writer Gordon Bowker, who had known each other since their college days at the University of San Francisco, put together $1,350 each, borrowed another $5,000 and opened a coffee bean shop in Seattle, Washington on September 30, 1971. Trinity was inspired by the idea of trading high quality coffee beans and equipment after coffee entrepreneur Alfred Peet taught them his way of roasting the beans. The first Starbucks cafe was located at 2000 Western Avenue from 1971-1976. The cafe then moved to 1912 Pike Place Market and never returned to its old location. At this time the company was only selling whole roasted coffee beans and did not brew coffee for sale, solely as promotional samples to try. In its first year, the company bought its green beans from Peet's, later it started to buy directly from farmers. In 1987 the original owners sold the company to ‎Howard Schultz, owner of the Il Giornale coffee chain (a former Starbucks employee). He changed the brand of his Il Giornale coffee outlets to Starbucks, renamed the company "Starbucks Corporation" and began rapidly expanding his network.

Starbucks official website
Starbucks official website

Today, the organization has a network of approximately 24,000 outlets, which are active in many countries around the world. The brainchild of ‎Howard Schultz is considered a "third place" for Americans, between home and work. Over the past few decades Starbucks has become one of America's symbols, as famous as McDonald's.

In Starbucks-branded cafes, customers can buy coffee, tea, juice-based drinks, vegetables, berries, fruits, as well as a variety of baked goods. The corporation actively sells products under the brand names Evolution Fresh, Seattle's Best Coffee, Ethos, La Boulange, Tazo and Teavana. The issuer generates revenues not only from the sale of goods, but also from the sale of rights to use its portfolio of brands.

Starbucks shares began trading on the NASDAQ exchange in the summer of 1992 under the ticker symbol SBUX.

Starbucks. Information on shares on the platform
Starbucks. Information on shares on the platform

Investment options for Starbucks stocks

The classic method of investing in Starbucks stocks is dividend. This method provides long-term investment in stocks with the aim of receiving dividend income in the future. Dividend investing is considered the safest, but not the most profitable, since you will not receive a profit soon. Rather, it is an investment for the future and is justified only if the investor has a lot of capital.

From 2004 to 2010, Starbucks did not pay dividends, but used all the proceeds to develop its business. After 2010, the company paid dividends on a quarterly basis. Along with the share price, the size of payments also grows, which exceeds 1.6% per annum.

Online investing in Starbucks stocks is done by trading CFDs.

A CFD (Contract For Difference, CFD) is a financial instrument (also known as a contract for difference) that allows you to trade the corresponding asset, even if you do not own it. You can profit by buying CFDs (if you expect their price to rise) or by selling them (if you are sure of the opposite market trend). Your profit will be determined as the difference between the purchase and sale of CFDs.

To trade CFDs, you need margin as well as leverage to increase capital. You can buy or sell a contract to profit from the rise or fall of the market. There are various strategies that are used when trading CFDs. They are quite simple, so they will be understandable even for novice traders. The most popular method for determining a long or short position.

In a long position, a trader buys an asset because he expects its prices to rise in the future. A high level of forecasting allows traders to make significant profits even with small fluctuations in the price of an asset. Agreements can be carried out on the basis of forecasts for both a month and a year. A short position occurs when a trader anticipates a fall in the value of an asset and, accordingly, decides to sell it. But at the next stage, the trader can buy the same asset, but at a lower price. If the forecast of a fall in the asset rate does not come true - its value will not decrease, but will grow - the trader will incur a loss on this position, the amount of which will be equal to the difference between the asset price at the time of the opening and closing of trading. The opposite is also true: if the prediction is correct, the trader will have a profit.

A short position allows you to make a profit within short (up to one minute) periods of time.

The vast majority of CFDs will have built-in leverage. Many traders and investors may be intimidated by the high leverage in CFD products. Therefore, a stop loss function is available on the platform, which automatically closes a trade when a certain transaction limit is reached. If you use this stop loss function, you will be guaranteed that you will not lose more than a predetermined amount, which is equal to or less than what you have in your account, no matter how much risk you take.

Nevertheless, statistics show a large percentage of novice traders who, due to lack of experience, suffer losses by using leverage and ignoring possible risks. Therefore, we strongly recommend that you carefully study how all the functions of the platform work before starting trading. This is easy to do with a demo account. What is a demo account and how to register on the platform - read below.

Starbucks trading room on the platform
Starbucks trading room on the platform

Broker selection. Online trading platform

You can invest online only through a licensed financial intermediary represented by a broker. The brokerage company, which you give preference to, must be legal, that is, have all the permits provided by the legislation of the country, as well as a license to conduct brokerage activities. Read reviews about the brokerage company using reliable sources of information - these can be official financial publications, business forums, and so on.

The broker will provide you with access to an online trading platform for investing.

A trading platform is a fully digital software product developed and provided by a brokerage company that will give you access to all transactions in the stock market. 

In fact, you will see all the information at a glance - quote charts, current asset prices, trading schedule, and you will also have access to the "training", "news" section, chat for communication with other trading participants and much more. Modern high-quality platforms additionally offer a set of indicators for technical analysis of asset price behavior, as well as tools for successful trading, such as the function of automatic closing of a stop loss position and a multiplier function for using leverage in trading.

How to buy Starbucks shares in the Philippines?

Having chosen a broker, register on the online trading platform by opening a demo account to start.

Go to the website of the brokerage company, find the "registration" option there, click on it and fill out the form that opens. To do this, it is enough to register a username and email. After that, an automatic link will be sent to the specified mail to confirm registration in the system - activate your account on the platform by clicking on this link. After these simple manipulations, your account on the platform is ready and you can log in and start working.

Registration on the platform
Registration on the platform

Test the platform using a demo account, explore what functions it offers. Check if you are comfortable using this trading software. It is recommended to start with a demo account, especially if you are a new user in the world of stock trading. You can make your own predictions about the value of Starbucks stocks, visualize expected profit, profit from sales and other values, test the performance of indicators and stop orders, try to work with leverage, and so on.

The demo account is provided with a certain amount of fictitious funds, which the system automatically credits to you. These funds can only be used to train your skills. Of course, you will not be able to withdraw this money.

Test the platform with a demo account
Test the platform with a demo account

After the testing phase, activate a real account and you can start real operations on the platform.

A real account is activated by replenishing it for an amount not less than the minimum set on the platform. This can be done with a bank card or some of the payment methods listed on the platform. The minimum amount to fund a real account is generally small and amounts to a few dollars. This allows you to start trading without even having a lot of capital.

In any situation, you need to remember that trading is a risky business, therefore, if you do not have sufficient experience, start with small amounts so that in the event of a failed transaction you will not suffer significant financial losses.

You can usually withdraw funds from your account in the same way as a top-up, using the same payment methods or bank card.

Activate a real account by funding it
Activate a real account by funding it

To work with Starbucks shares, select the "assets" tab on the toolbar, then select the "shares" section and in the companies search page enter the name "Starbucks" or an abbreviated search option, the ticker of the SBUX company. You will open a trading room with a quote chart of the Starbucks company. Here you will have access to up-to-date information about the company in the form of a share price, a trading schedule, statistics, as well as indicators for analysis and trading tools.

Search for the company under the symbol SBUX
Search for the company under the symbol SBUX

How to invest in Starbucks shares in the Philippines?

So, to start investing in Starbucks stocks in the Philippines, you have to take the following steps:

  • Find online a list of brokers who work online with Starbucks stocks. Pay attention to the image of the brokerage firm on the market, what kind of work experience they already have, what kind of reviews. Also find out what commission is charged by the brokerage office for the services provided. Consider an online investment platform - is it easy to use, is there a demo account for conducting test operations, how much is available on the demo account, and can this amount be recovered if necessary? Also check if there are technical analysis indicators available on the platform, stop loss functions, multiplier and such relevant information as the current value of the shares, trading charts?
  • Make a personal business plan, exactly what goals you want to achieve and what goals you pursue by starting investing - or is it a desire to earn money as quickly as possible, or a desire to protect equity capital from possible depreciation now and receive income in the future. This will determine what type of investment you choose, whether it will be a short-term or long-term investment. Depending on the type of investment and your strategy of behavior will be different. Also, be sure to determine the amount of initial investment. We suggest starting with small amounts when trading experience is still small, or even more so if you are a beginner. Invest such an amount of funds that, if lost due to an unsuccessful transaction, will not cause your financial ruin. We do not aim you at unsuccessful operations, but we warn and remind you that investing is a risky thing, so you need to act here gradually and deliberately.
  • Keep your finger on the pulse of the news. Remember that the laws of the stock market need to be learned, but there are still a number of factors that affect the price of assets. This is the political situation in the country and in the world as a whole, economic news, as well as news that, at first glance, do not relate to investment - these are man-made disasters, for example. Often such events are reflected in the activities of the firms in which you invest, therefore they are also of great importance.

Remember that the risk you take when investing in stocks online is largely dependent on your thorough knowledge, understanding of the stock market, your ability to thoroughly analyze, as well as experience and even intuition.

Unfortunately, no one will say for sure whether you will be a successful player in the investment market or not, but without trying, you will not know for sure.

Open a demo account right now and make sure from your own experience that online trading is interesting and profitable!

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