'Finding The Next Starbucks': A must-read

Posted Jun 29th 2007 5:29PM by Georges Yared
Filed under: Starbucks (SBUX), Define Investing, Books

It is refreshing to any reader when the author of a book has walked the walk and talked the talk. Well, this is the case with Michael Moe's new book Finding the Next Starbucks. Michael Moe was among the very first analysts to discover the growth and magic of Starbucks Corporation (NASDAQ: SBUX). Mike was a young analyst visiting companies up in Seattle, and after a long week, his last meeting was with the fledgling, up start company named after a Moby Dick character. Mike nearly canceled the meeting to catch an earlier plane home. The readers of Mike's new book should be grateful he did not. Mike was involved with Starbucks when it had a market value of barely $200 million: today Starbucks' market capitalization is $20 billion.

Finding the Next Starbucks is a must read for any level investor, new to experienced. Michael Moe brings his more than 20+ years of investment banking and analytical experience and skills to life. Michael is passionate about growth investing and the power of growth. I said he has walked the walk and talked the talk: Michael is Chairman, Founder and CEO of ThinkEquity Partners headquartered in San Francisco. ThinkEquity has recently merged with British firm Panmure Gordon to establish the entity into a global player.

Michael's book is superbly written and easy to follow. Michael brings out real-world examples to magnify a point. He teaches the reader in every-day language how to identify the potential winners, and more importantly, the potential losers. Michael Moe brings a passion to his book that every reader should both enjoy and learn from. This is the kind of book many of us will wonder "where was this book 10, 20 years ago?" Young people should read Finding the Next Starbucks as it would help educate a generation of future investors.

Michael Moe artfully takes the reader through his process of the 4 P's -- people, product, potential and predictability. These 4 P's are critical to answer in the affirmative before further work can be done on any company's prospects. Michael interviews several leaders of the business community, venture capitalists and portfolio managers in his book for real live examples of "how to do it right." For you sports fans, Michael has a brilliant interview with his former college football coach, the legendary Lou Holtz. Funny thing is, they discuss very little about football and more about business and life.

Michael Moe is an authority on growth investing. His every-day job is to deal with these companies in his capacity as CEO of ThinkEquity. For full disclosure, I have seen Michael Moe work up close and personal. I was a partner at ThinkEquity from 2003-2006. When I write that Michael walks the walk -- he does daily in his work. Michael has spotted and identified some of the key mega-trends of the next 5,10, and 15 to 20 years. Identifying these trends is critical to the future of growth investing. Michael's point is "once we know the sectors, the mega-trends, now we find the best and the brightest companies in those sectors." For example, Michael has identified huge sector shifts in on-line education, alternative energy, the power of women, and several more.

Michael Moe spent the better part of two years writing Finding the Next Starbucks. He interviewed the best and the brightest as he wanted to offer the reader the very best opportunity to learn and, hopefully, profit from their collective wisdom and experience. Michael accomplished his goal: the book is a must read...

Georges Yared is the CIO of Yared Investment Research.

Tags: Finding The Next Starbux, FindingTheNextStarbux, growth investing, GrowthInvesting, Michael Moe, MichaelMoe, sbux, Seattle, starbucks, ThinkEquity