My dueling partner Alyce Lomax is correct, in one sense: Starbucks
Wal-Mart
I'll grant that people may be willing to pay a premium for the overall Starbucks experience. History suggests, however, that people aren't willing to get gouged repeatedly for the same experience. Otherwise, why would theme park operators like Six Flags
Then there's China. China's population and current economic growth sing a siren song that has enticed many multinational companies to invest. Yet as legions of global titans that came before have discovered, the "affordable luxury" market is a tough nut to profitably crack in an economy with such a low per capita GDP.
Starbucks certainly has a successful past, and if it executes well, its operational future may be bright. Its stock, however, trades as if its continued rapid growth is guaranteed. That's always a dangerous situation for investors, no matter how strong the underlying company may be. Between newly hungry competition, increasing economic sensitivity, and the difficulty of profitable growth in the emerging markets, Starbucks' challenges are only increasing. I may purchase the occasional Starbucks coffee with my discretionary dollars, but my investing dollars are far more excited by the value experience.
Think you're done with the Duel? You're not! Go back and read the other three arguments, then vote for a winner and share your opinion at Motley Fool CAPS.
Starbucks is a Stock Advisor pick; Microsoft is an Inside Value selection; and Cedar Fair made the cut at our Income Investor service. Whatever your investing style, the Fool has a newsletter for you.
At the time of publication, Fool contributor Chuck Saletta had no direct ownership stake in any of the companies mentioned in this article. The Fool has a disclosure policy.