The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.
John and David are always looking for quality companies at reasonable prices for their real-money portfolio. That's why they're buying some shares of Starbucks, a great company with first-class management. It has more than 18,000 stores around the world, and that number will grow over time, even with competition from McDonald's and Dunkin' Brands' Dunkin' Donuts. The company is always looking to innovate as well. It's looking to take advantage of the energy-drink market that really took off with Monster Beverages, but wants to do it using natural ingredients. There's also the Verisimo, Starbucks' single-serve machine that can take on Green Mountain's Kuerig. And there's its packaged-goods initiative, as well as its push for more food in its stores. Starbucks has lots of ways to grow. At 24 times forward earnings, Starbucks is reasonably priced relative to its growth initiatives. John and David are excited about adding it to the 10-Bagger portfolio.
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