Earlier this past month, investing magnate Bill Ackman announced he had taken a significant position in Starbucks Corporation (NASDAQ:SBUX), a move which surprised many, given the underperformance of the coffee chain in recent years.
The stake (between $800 million U.S. and $900 million U.S.) from Ackman's Pershing Square Capital Management would give Ackman more than 1% of the company's stock at current prices (shares of Starbucks have been on the rise following the announcement of Mr. Ackman's position).
Starbucks is a company I like personally, and believe in the long-term growth and vision of the business, particularly in Asia. I think Ackman has strategically jump in at a time when few else would, and is playing the long game with this investment for investors.
It remains to be seen how well (and profitably) Starbucks will be able to roll out stores in Asia, however taking advantage of the company's impressive brand outside of the United States should serve shareholders well in the long term.
While Bill Ackman has certainly been wrong on trades in the past, I believe he is right on this one – I would recommend investors consider adding on any dips in the near term.
As always, a reminder that insider selling is in no way an indication of the direction a stock is expected to move in the near-term, and long-term investors should assess the fundamentals of said company and consult an investment advisor before making any purchases.
Invest wisely, my friends.
