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Howard Schultz: He Changed The Way We Drink Coffee

SBUX (Starbucks, $56.64) former CEO and executive chairman, Howard Schultz, made announcements to depart from the company yesterday. Schultz bought the company in the 1980’s. With a net worth of 3.1 billion, things weren’t always easy for Shultz. In his early life, he was born and raised in Brooklyn, NY and grew up in a city housing authority. His family of five was poor and saw an escape in sports such as football, baseball, and basketball. Though Shultz had a rough start, he took charge and has won many awards of excellence.

Howard Schultz has been nominated as the world’s most influential people by Times Magazine as well as achieving 16 years in a row on Fortune’s global list for fifth-most admired company. He Shultz told The Times,”One of the things I want to do in my next chapter is to figure out if there is a role I can play in giving back. I’m not exactly sure what that means yet. I intend to think about a range of options and that could include public service.”

In his closing letter to his employees, he said,” Who could have imagined how far we have would travel together, from 11 stores in 1987 to more than 28,000 stores in 77 countries. But these numbers are not the true measures of our success. Starbucks changed the way millions of people drink coffee, this is true, but we also changed the people’s lives in communities around the world for the better.”

Starbucks has filled Schultz position with new vice chairwoman, Mellody Hobson. Hobson, president of Ariel Investments, was also the former chairwoman of DreamWorks Animation. Mellody Hobson was the first African-American woman to be the head of The Economic Club of Chicago.

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The Christian Investor: Sweat Equity

I recall many times when I was working very hard on my networking business and there were days when I wanted to give up. I had no results even though I was doing everything I could; I was a top performer, drove many miles on the road to meet new customers and present new business opportunities on a daily basis. Nothing seemed to work and I couldn’t get past the glass ceiling. But now I’ve realized that I was working hard for others, but I wasn’t trusting God with my business.

Only fear the Lord and serve Him in truth with all your heart, for consider what great thing he has done for you. – 1 Samuel 12:24

As entrepreneurs, we have to constantly remind ourselves to work hard and pray like it’s up to him. There will be dry seasons (if you haven’t had them already) and you will feel like giving up. But if God gave you a clear vision of something you’re passionate about, is that worth leaving behind because you’re not seeing results? Everyone has a different path and in my situation, the dry seasoned passed and things were brighter because he had a better plan for me. But sometimes God will place us in these particular situations because he wants to see our sweat equity. With God, anything is possible, but if he gave you your dream tomorrow, would you be capable fo handling it (as we all raise our hands and say, YES!)

As investors and business owners, NEVER underestimate God and his power. He simply wants you to lean on him- not on your understanding, but his! As we enter into a new week, ask Him to lead you in strength through this time in your life and remember all of the things he has already brought you through.

You will eat the fruit of your labor; blessings and prosperity will be yours. -Psalm 128:2 (NIV)

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Ford: Driving Back to Fourtune?

F (Ford $11.71) has made great company changes in order to sustain in the automotive industry. With a growing revenue of only 3.28% from 2017, many investors have mixed feelings about the business operation.

In this time in the automotive industry, there is a high demand for sport-utility and pickup truck vehicles. From F discontinuing their sedan models, they are projecting a lucrative return for this year and the year of 2019.

With a forgiving dividend history of $0.15 per share (since 2014), they have a very low GPR (Gross Profit Revenue) of 16% and spend almost half of their revenue in SGA costs. F‘s financial track record could be better (in my humble opinion), yet many investors are considering the stock a buy at its low price. But is it worth the investment?

Their $11 million dollar free cash flow has given the company little room to work with reinvestments. Investors hold the company accountable for their bright outlook on the next 5 years to come.

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Cheap Stocks

I get it. Our economy is awful, we can barely hold a $1,000 emergency fund and investors have transferred from value investing to looking for something that will have our “bang for our buck” kind of deal. However, just because a stock is “cheap” doesn’t mean that is it necessarily a good buy. It may be best to hold on to your savings for the more expensive index funds stead of buying the penny stock.

Stop trying to get rich quick from the stock market, It won’t work in your favor.

There are many stocks you can find under $5 dollars, but keep in mind that the lower the dollar, the higher the volatility. Investors who ignore the company’s financials and selling product, only care about how much money they can make. Stop trying to get rich quick from the stock market, It won’t work in your favor.

Besides the fact you feel special holding 1,000 shares of a stock that can cost a little as $0.0032, what value does the company hold long-term? Wealthy investors don’t care about the price of the stock, they care about consistency. What is the company competitive advantage? What are their competitors and the amount of money they spend on research and development?

May I encourage you to look deeper into every company you are investing in. Your due diligence is the only way that makes each investment the right investment. Every investor is responsible for his or her gains and loses, so choose wisely.