Hey it’s tax filing day in the United States!
Can you feel the electricity in the air?
Here’s a fun thought if you’re a W2 “Wage Slave” and you got a tax refund.
You just gave the U.S. government an interest free loan.
We should all be getting a big “thank you”, right?
This reminded me of Starbucks, which we stopped at yesterday because my daughters had gift cards.
Actually, the gift cards for sale shown below reminded me.
Starbucks has about $1.64B sitting around from unused gift cards.
The customers are literally giving the company an interest free loan!
This also happens with insurance premium float, as money is received today which might have to be paid out later.
But until that time arrives, the company can use it to grow.
Whether the Federal government is wisely using their interest free loan is highly doubtful.
But next time you see a purchased Starbucks gift card, just remember it’s like a crazy bond where the borrower pays 0% interest.
Very interesting food for thought if you’re a Starbucks investor.
Thanks for reading, and be sure to stay tuned for the Sunday portfolio update edition.
~Russ Knopf
