Hello from Baltimore, where I'm spending the week with my team.
It's something I like doing a lot because it gives us a chance to review ongoing investment opportunities, but also to do the research necessary to identify the next generation of profit potential.
As part of that, we spend a lot of time around the conference table, asking and answering questions about all sorts of things related to your money. And that's what I'd like to talk about today.
Specifically, the question of whether or not a "nice-to-have" company can ever become a "must-have" company.
Yes, under very specific conditions.
In fact, we've got a great example of one longtime investor favorite doing just that right now.
It's a company whose name is on the tip of a lot of investors' tongues – both literally and figuratively – as you'll see in a moment.
Now, I really wanted to dig into this one, and because I've got the video studio at my disposal this week, here's my thinking…
Now, in the interest of time, here are some additional facts that'll help reinforce the concepts we've just talked about.
A company can make the jump from "nice to have" to "must have" when its brand is wrapped in a much bigger Unstoppable Trend, as is the case with Starbucks Corp. (Nasdaq: SBUX) and its payment system.
A few years ago, in 2011, there was an IDC Digital Universe Study called "Extracting Value from Chaos" that centered on the role of big data. They weren't talking about Starbucks specifically, but rather the size of the Big Data market as a whole, which at that time was a staggering $34.4 trillion.
That's hard to truly quantify, so let me put it this way…
$34.4 trillion is roughly equivalent to the GDP of the United States, Japan, China, Germany, France, the UK, and Italy combined. We're talking about so much data here that you'd have to have 57.5 billion 32 GB Apple iPads to hold the 1.8 zettabytes at hand.
The business benefits are staggering for every company that can latch on, and it moves Starbucks beyond the limitations of physical coffee cups and into one of our Six Unstoppable Trends; namely, technology.
I can't understate the importance of this.
For example, according to HRBoss.com, companies that are able to manage and use data efficiently are…
- Five times more likely to make smarter decisions faster than the competition
- Three times more likely to execute decisions as intended – with better results
- Two times more likely to have top-quartile financial performance
The reasons are straightforward when you think about it.
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.