Is it good to invest money in the specialty coffee industry (e.g. Starbucks)?
I think you can still make money in the sector, but one must be very very selective as to what they are choosing. Starbucks Corp. (SBUX) is the leader in the group and a brand name that many are loyal to. While alot of the details you added are in fact true, one must also consider that Starbucks stock price has been cut in half over the last two years so alot of the bad news is already priced into the stock http://finance.yahoo.com/q/bc?s=SBUX&t=2… They are also entering the China market for growth so that too must be considered a plus when looking at the risk to reward scenerio. Earnings, growth and revenues year over year are looking to increase nicely for Starbucks according to Wall Street estimates http://finance.yahoo.com/q/ae?s=SBUX So I would say Starbucks would be a buy here and a good investment for the long term (three years or more). On the other hand th