Starbucks coffee vs Tata consumer product stock

One Starbucks coffee cost 250. Let say one person consume 12 coffee per year. it will cost him 3000 per year.

Starbucks in owned by Tata Consumer Products Ltd (50%). In 2002 it was listed, from 2002 it gives 3,244.05% of return in last 20 years. In 2002 per share price= 20.68 and current market price 691.55. if we calculate CAGR it become 19.18%.It means every year our investment gives 19.18%.

Let say that person of age 25 consume 12 coffee every year for next 35 years till his age of 60. And upload every picture in his Instagram.

Let instead of buy a coffee every month he invests same amount in the company for next 35 years and we get the same return for next 35 years. Here we have

Years = 35 (when he became 60)

Percent Yield= 19.18% (calculation based on last 20 years)

Initial Balance = 0

Monthly Contribution= 250

The Final Balance of that person = 1,21,92,169.20/- at the age of 60. ( Full calculation based on past 20 years history of the company. If required full calculation I can provide you)

So, we have two way, we can have a cup of coffee at Chistanbasti, Guwahati and upload in Instagram or we can own part of the company and get 1cr+ at age of 60. Which may become someone retirement fund.

- Shaishab Pran Bora

Comments

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Shaishab Pran Bora

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