Thanks a Latte
For all of next week there will be free coffee being served at participating McDonald’s restaurants in Canada. You can see their Facebook page for more detail 🙂 If you want to exploit other people’s caffeine addictions like I have, then consider investing in profitable coffee companies 🙂
I bought shares of Starbucks and Tim Hortons earlier this year. On average these 2 companies have so far produced over 30% return on investment since I blogged about buying them in January. I hope some of you guys were also able to take advantage of that opportunity. I predict their prices will rise even higher going into 2014!
A couple days ago the Bank of Canada pointed out that the country’s economy is growing slower than previously thought. It’s even considering to lower the interest rate. This changes everything for businesses. For the past couple of years, we’ve believed that rates could only go up. But now we realize that they could just as easily go down in the future. This is excellent news for investors like myself 🙂
How can we benefit from this news?
- First. Realize that this means borrowing to invest is now less risky than before because we know with relative certainly the cost of short term lending won’t be going up any time soon (exception being in the fixed rate mortgage market.) So personally I’m going to use more of other people’s money to hopefully accelerate my own profits.
- Second, buy US assets. After the Bank of Canada announced this news my net worth increased by $400 immediately 😀 Why? Because I have $40,000 USD in American stocks, and the news brought the Canadian Loonie down by a whole 1% compared to the U.S. dollar. I have a feeling the $CAD will fall even more over the next 12 to 18 months. Since I calculate my net worth in $CAD, for every 0.25% weaker our currency becomes I’ll get an extra $100 for free 😀
The Panes of Building a Home
A young couple, both artists like myself in their 20s, had quit their jobs to build a home in the woods in West Virginia. They scavenged abandoned yard sites for building material and spent as little money as possible. Slowly but surely they built their dream home for only $500.
They also claim their diet contains a lot of rice and beans, which is understandable since they purposefully quit working! But hey, good for them. I admire their creative passion and how they did something meaningful with their lives 🙂 This is a great example of frugality taken to the extreme! But it’s not something I’d want to do myself.
Thanks for the heads up on the free coffee. One time, I just walked up to the counter and ordered a small free coffee w/o ordering anything else. But I’ve paid my fair share at MCD many times before. Nice to get a freebie treat once in a while 🙂 Good job on SBUX and THi. Too bad I sold out SBUX last year, maybe time for me to jump on the THI train for the long run.
Can’t go wrong with either of those companies 🙂 Great brands and very profitable.
Thanks for the mention, and love the Honda video! 🙂
Most car commercials these days use extensive computer generated visual effects. It’s cool to see a video done with traditional special effects rather than digital smoke and mirrors 😉
I’m curious about how the new Teavana cafes will go over and impact SBUX’s bottom line. For your sake, I hope well… but our local teavana is usually empty every time I walk by. =)
Did you make it to FinCon this year?
The founders of Teavana did really well for themselves when Starbucks bought them for $620 million last year. Unfortunately I don’t have enough vacation days left to book a trip to FinCon this year, but maybe next time 🙂
Thanks for the mention there! Those are some good links. Started following some new PF blogs! Thanks for sharing!
Great job on the coffee stocks! I might have contributed to your profit (Starbucks drinker!) ;P
Thanks for being a loyal customer 🙂 I got into it because I heard half of Americans over the age of 18 drink coffee on a daily basis. It’s like a legal drug lol. My next investment plan is to get into the cocoa business, chocolate 😉
Wow. Helluva reading list. I love McDs coffee 🙂
Have a great weekend and thanks for the mention man,
McDonald’s is really giving other coffee chains a run for their money. I like how they also redesigned a lot of their restaurants to make them feel more modern 🙂
Thanks so much for the mention. I have been keeping my eye on Starbucks lately in terms of my next stock purchase. I don’t have any US stocks in my portfolio at the moment. I sold them to help with the down payment on the house. :S I hope to purchase some SBUX before the end of the year though. They are definitely a lucrative company.
Good call dudette 🙂 I also invested in prime Canadian real estate before buying individual stocks. We should be better returns on our properties than equities because of the extra leverage that comes with buying a home. But as far as stocks go Starbucks all the way!
Thanks for the link love! And man, I could so not live off of rice and beans. Never gonna happen for me, but good for that couple for being the ultimate frugal folk!
I wonder if they’ve installed proper heating/power/insulation/water/drainage systems. And if they have, do they pay any property taxes? lol. In any case, too frugal for me too. I like rice and beans but can’t see myself eating it too often 🙂
Thanks for the link round up – I missed the story about the young couple.
Jolly good. Cheers 🙂
I’ve stopped going to Tim Horton’s for coffee and only go to McDonalds because it tastes like coffee. Timmys has done something to the coffee and it’s so weak now. I think with the intro of the expresso shot they weakened it so they can get better marketing power for the es.. I dunno but i can’t stand it anymore. Thanks for the heads up on the free coffee!
That’s too bad Tim Horton’s coffee is watered down. Maybe that’s why it’s failing its expansion into the US. Ah well, I still have high hopes for McCafé and Starbucks down there 🙂
My wife loves McDs coffee. Enjoyed the video. Great post!
Thanks. Tell your wife that I, and all other McDonald’s shareholders lover her too, as a customer of course 🙂
Thanks for the link love. Also… REALLY cool commercial. Although, now I have a slight headache from watching. Haha.
Imagine watching it in 3D stereoscopic 🙂
Thanks for including me this week!
Any time. Thanks for the movie recommendations.
You gotta love investing…sometimes the gains might sound all semantics, but they are real! Sounds like the time to seriously shore up investments exploiting other people’s funds.
The couple…certainly living the dream, quite inspiring too!
Appreciate the mention.
Investing is one of the best things in the world. The whole idea of making money by putting existing money to work is brilliant. It gives everyone an opportunity to make their dreams come true.
Thanks for the mention!
Sure thing 🙂
Wonderful video. Enjoyed watching it.
Me too. Thanks for dropping by 🙂
thanks for the linklove 🙂