Yipee! Starbucks hit an all-time high on Wednesday, and continues to get stronger and stronger over time. However before jumping for joy, Jim Cramer wants to make sure that investors are putting the stock in their portfolio for the right reasons.
Cramer added that if an investment in Starbucks is made for the reasons, this is the ingredient that will lead to long-term growth and prosperity with the stock. Not the weak handed investors who might be in it for the wrong reasons, such as the price of coffee.
With the announcement of premium coffee delivery service, the stock is off to the races yet again. Stores in the U.S. and China have also grown tremendously. Cramer even has his eye on India, as the Teavana chains have been gaining strength, as well.
Starbucks' innovation extends all the way from in-store technology, to innovation for employee retention initiatives, such as college tuition programs. It truly touches a soup to nuts perspective on innovation.
However, there is one thing that has stood out for Cramer that has been bugging him for ages: rising coffee prices.
Investors and hedge funds were freaked out last year when the price for Arabica beans shot through the roof, thanks to a drought in Brazil. And even though CEO Howard Schultz did explain that the price of coffee would not impact the bottom line, investors still bet against the stock.
And yet on Wednesday, coffee dropped to the lowest price in a year and now Starbucks' stock has shot the lights out.
Coffee prices have been steadily dropping since October, and during this time investors finally took the time to notice what Starbucks has to offer outside of the price of coffee; such as its outstanding performance, customer loyalty and profitability.
"It's a shame that the coffee price issue obscured the real story here for so many people, but, once again, this kind of 'one-way' data point thinking led investors astray … when it was actually quite strong," said the "Mad Money" host.
In Cramer's opinion, Starbucks will never be about the price of coffee. That is not a reason to invest in it. So if you are an investor who has bought Starbucks because of the low price of Arabica beans, you're in it for the wrong reasons.
Starbucks is about the experience for those who love coffee, loyalty and a partnership with customers that cannot be challenged by any other retail cohort.
----------------------------------------------------------
Read more from Mad Money with Jim Cramer
Cramer Remix: Don't worry about Nasdaq
Cramer's hottest stocks on the market right now
Cramer: The secret behind surging stocks
----------------------------------------------------------
With that said, here is Cramer's recommendation for the right way to invest in Starbucks: Do your homework. That means go and listen to the latest company conference call, read its press releases. Then make up your own mind to decide if this is a sound, long-term investment.
"That is how you invest in Starbucks, not by checking the prosaic price of Arabica coffee beans. At the end of the day, I think Starbucks is just like Apple: You don't trade this stock, you just own it."
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com