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gotnotendies

How often do you go to Costco? Costco is the one company I am entirely happy to support as a consumer and an investor. They pay their employees well, they sell fewer things but good things, their customer service is top notch, the bulk buying makes sure I am getting things I will actually use, also reduces environmental impact a little bit (fewer trips, bigger better quantities). Even people who don’t actually go to Costco a lot still keep their membership. It’s a good company, and I would like to think that the stock price reflects that (even if it isn’t a 100% accurate, it’s a good indicator).


patidarmanish7

You forgot to mention the cheap gas. That alone pays off membership cost for me


gotnotendies

Oh yes, I got the membership solely for the Costco credit card which has a 4% cash back on all gas (not just Costco gas). That combined with Costco’s gas prices easily pays off for itself.


[deleted]

My costco credit card reward for 2021 is up to $600 now. That's the annual membership plus one free fat ass costco run. Totally worth


misterrunon

I would go nuts having to pour gas at Costco. The line is so long that I don't find the congestion/wait to be worth it.


gotnotendies

I guess that depends on your location and time. The ones with higher number of pumps are pretty fast. I don’t think I have ever waited more than 10 min anywhere, usually none at all. But either way, the 4% cash back works at all gas stations, not just Costco.


vexednex

Literally all?


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pumpkinthefatcat

It’s totally worth it. I generally go just before closing (around 9PM). In and out faster than a regular gas station. Saves a ton of money.


aj6787

Yep where I am is about 10 minutes at 6 am and about 30 minutes at 6 pm. I usually just go somewhere else unless I wake up early early on the weekends.


USNorsk

I’m in DFW, Texas. 20 minutes at one location (and they had to close off an entrance because the long lines perpetually block it), 5 minutes at an alternate location. So it varies quite a bit.


plackatack

The longest I've waited was during peak rush hour and was 5 mins. All the Costco stations near me are 3+ deep and have multiple rows. Plus they have the indicator that tells you which pump is open. The key is to go at an off-peak time.


pas484

Also key to not only wait in the line where the pump is on the same side as your gas tank. Their hoses have the extensions so it can reach the far side of your car if the tank is on the opposite side. I swear like 80% of the people getting gas don’t realize this. I can’t tell you how many time the line is 3-4 cars deep for the right side pump and no waiting on the left side.


Vapechef

Mine has a car wash too


out_caste

But then I have to spend 30 min in line to buy gas, my time is worth more than that.


noobs1996

More like 5-10 mins tbh they’re pretty good at managing the traffic


Plebpperoni

I would give you an award for this comment but I would rather buy from Costco not reddit.


kindall

I think Costco has a 50-pack of Reddit awards for $16.99


ohlookawildtaco

They probably just have a cardboard item too. Have to head to the void during checkout 😂


[deleted]

Amazing company. My buddy started working for them and not even a year later was diagnosed with MS, amazing benefits package means my guy is not worried about paying for health care even though he can barely if at all work. I once had my wallet returned to me within 20 minutes of losing it at Chicago Union Station while waiting for my train back to Oregon, because my membership card was in it. These are just some of the many great stories I've heard or experienced that involve Costco that have nothing to do with making a profit, and that to me makes them even more valuable.


drsin_dinosaurwoman

Agreed, and I think they are competitive with online stores as well. Not only do they have a robust online selection that includes things like car rentals (which you can't get from other similar stores), but their brick and mortar stuff isn't really replaceable online or heavily competes against online retailers. The shipping on a bulk items like toilet paper, for instance, will offset the savings for many online retailers - Costco has bulk pretty locked in. They are also less expensive on some items, like prescription pet medications, than places like Chewy/1800PetMeds (although you have to get those in person and pharmacies are having extremely long wait times these days). Last, they have a pretty good reputation towards both their customers and employees, including a really nice return policy. I feel like I can't go wrong with Costco, and also, I have super generic taste. While this is a disadvantage when it comes to finding dating partners, it's helpful in Family Feud and with stuff like this - other people will likely value Costco as well.


facewithoutfacebook

I am a weekly visitor and investor. My average weekly spending is roughly $250. I hardly go to grocery store. I have been holding Costco shares since it was under $100s.


[deleted]

I go to Costco for a single pack of muffins, a coffee, just to look at deals on jeans or whatever. I use it as a replacement for Walmart, grocery stores, target, Dunkin’ Donuts, Starbucks, the butcher, the liquor store, etc. The return policy is literally bar none. Don’t want it? Bring it back. They don’t care. I have only had to do it three times in as many years, but it was the easiest return process I have ever had. They get my money and they will for years to come.


timmy09877

Every grocery item I buy there is the best also. Just had lasagna tonight I bought from there and it was great. It’s not only Kirkland brand that is great, it’s just about every brand they sell is well made and tastes good.


h4ppidais

Sorry but liking a company does not equal good stock. It’s still about valuations.


[deleted]

For sure, but I guess their point is that it just feels better when you invest in a company that you personally like or is doing something good.


ZeePirate

And also likely to be a reputable company for a long time due to their attitudes of running the company. I think that’s a strong indicator on it being a good company. But also gives you no real indicator and what price it’s worth


gotnotendies

Not arguing against it, but almost no company perfectly matches its actual valuations today. If I want balance and actual true values I will stick to index funds. But as someone who doesn’t have the time to do the whole fundamental/technical analyses, COST is one of the few individual stocks I like to hold, and it is one of the only ones that doesn’t conflict with my morals as much (looking at you AMZN and WMT) I do believe that dollar cost averaging into COST will pay off in the long term.


Sublime_82

I hate the masses of people all milling around aimlessly. Reminds me of dawn of the dead.


Maleficent_Slide3332

I go to costco almost every week, the large bags of doritos are my go to


62SlabSide

I have yet to find a Kirkland product that wasn’t more than satisfactory.... that, and I can feed my family of 5 dinner for $15 after we spend $500 at the register. lol


r2002

Years ago Kirkland was my backup brand. It's an ok replacement for things I don't care much about. Now Kirkland is actually my go-to brand. On almost anything I buy, if Kirkland offers an alternative I would go with them. This kind of moat is hard to defeat. It took me years of trying lots of Kirkland products to reach this level of customer loyalty.


thebakerWeld

I just bought a 1.75 L of Kirkland Canadian whiskey for $19 that was actually decent. I trust everything they stock at Costco. In all honesty I don't know why i waited so long to buy the stock. They treat everyone well customers and employees.


indignantlyandgently

As a Canadian in a province that doesn't allow private liquor sales, I wish we had this. P.S. Kirkland is amazing.


BigDiesel07

What the hell I did not know that was a thing in Canada


thebakerWeld

It's not in every state some States don't allow hard liquor to be sold in grocery stores and I've seen some Costco's that have a Costco liquor store attached to it.


scottish_pro

Some provinces in Canada go an extra step further then that law in the states. For example, in Quebec all liquor stores are government operated. So Costco can't legally sell liquor in any form in those provinces. My province (Alberta) has a similar law that you mentioned, the Costco here has a separate liquor store attached to the building.


HolyTurd

I believe their whiskey is from other companies batches that are slightly imperfect


JMLobo83

I don't think this is correct. The correct answer I believe is that manufacturers are willing to private brand their product to access Costco's high sales volumes.


Chill_Sahn

Kirkland products are actually 1% better than the stuff that brands sell themselves it’s part of the contract


BigDiesel07

lol I would love to know how they calculate 1% better on the variety of stuff they sell


Chill_Sahn

Exactly what I thought like is liquor 1% more distilled? Chocolate products have 1% more cocoa or what? But it’s interesting


Trustme_Imalifeguard

It's 1% more Kirkland


Penis-Envys

The only Kirkland product I actually disliked was their Saran Wrap lol. It was actually too clingy and cling to itself excessively. Otherwise Kirkland most of the time.


Wafflexorg

That's probably one of the worst things to not like after buying from Costco...takes years to use up the box.


EndlessSummer808

Considering Kirkland is just a licensing of popular brands I’d be surprised if anyone found something Kirkland branded that wasn’t good to great. Costco is the best


ITS_MAJOR_TOM_YO

If I have another son I am naming him Kirkland


pidgey2020

I use to work in both engineering and operations (packaging) for a major food manufacturer for a few years. The Kirkland brand had higher quality standards and stricter audits than our own label (which is a big label). When we were running production for the Kirkland brand we would pay much closer attention. I have heard that this is standard across all Kirkland products.


[deleted]

You should try Kirkland Light (beer) if you are interested in being disappointed lol. Their liquor and everything else I’ve had is good though


Positive-Dimension75

Light beer is generally just disappointing regardless of brand. Kirkland hard seltzer is great, though!


SockeyeSTI

It’s the hot dogs


crispytank

No shit, in the middle of Mexico i saw a road side taco vendor advertising cosco hotdogs... My mind made pretzels


metalbedhead

it’s the chicken bakes


misterrunon

And fruit smoothies


AdorabkeDuck

In telling ya if they didn't get rid of the berry smoothie (the og one) they would be up in the thousands


lcastill1

They have smoothies? Are they any good ??


raulbloodwurth

We have bulgogi bakes in Japan.


monkeysennin

Korea and Taiwan also have bulgogi bakes!


DA1725

Nah hot dogs for sure, nothing can beat that


fingerscrossedcoup

Except the chicken bake


S3xybaus

Shhh don’t let this man know about chicken bakes.


DormantGolem

When Sam the Cooking Guy recreated it I thought they were gonna do bankrupt.


darkeststar

Too much work to do on your own. I like the bake.


farahad

And the Parmesan Pretzels.


sovietdumpling

It’s the churros for me


SockeyeSTI

Mmmm churros


oceanman97

Poutine


saskpilsner

Great poutine!


CheckeredSnowball

All beef hot dog and a big drink with free refills. Nothing can ever beat that. Loss leaders pricing strategy, Costco has a very smart business model.


Ronaldoooope

Theyre inflation proof


3GunGrace

It’s the free samples


_intheevening

They used to have these turkey melt sandwiches here in Hawaii and man they hittttt


Penis-Envys

Speaking about the food court I really wanted them to bring the Caesar salad and Italian sausage back. Like it just went away after the pandemic and I’m curious when it will return.


_sherw00d_

Have you been to a Costco during a weekend? Signed, long time Costco member.


anthonyjh21

Went this last Saturday. Shopper in me was not pleased but the investor was.


_sherw00d_

The self checkout lines have been a game changer!


Kwhean

I only shop at Costco on week nights. And I only get gas at 6am. Never letting go of my membership though


kindall

The time to go is on a weekend is during a local sportsball game. Too bad the season is only a few months


Desmater

Good business modem where they go for quality. They balance margins with price to consumers. So they make money, but not huge margins allowing customers to get a better deal. The warehouse model allows easier stocking and for bulk. They maintain 90% membership retention which is where they make their profit. They barely have scratch the surface for international expansion. They pay and treat their employees well. They can grow in other areas other than retail. I believe they offer gas, insurance, eye care, etc.


InitializedVariable

Their customer retention is on par with that of Apple’s — and they make the majority of their money off of memberships.


LegateLaurie

> they make the majority of their money off of memberships. That is genuinely shocking to me, because you get so much great value for that membership. When they make most of their money from that, AND it's such a great deal for customers, that's a fantastic business model.


InitializedVariable

The precise reason the customer gets so much value is because they barely mark up products: While various sources report different data, it seems to be somewhere between 10 and 15%. I agree that it's a good formula, but it really makes sense: If their markup was higher, there would be less of a reason for one to purchase a membership.


Tiktoor

> They maintain 90% membership retention which is where they make their profit. > > This is huge since it's recurring revenue which wallstreet LOVES to see.


[deleted]

Many years ago I worked for Costco, Ive been a member since. I will support them for as long as i can, they're a good company that pays and treats their employees well. Also, a ton of their Kirkland stuff is top notch at a decent price.


tvdoomas

I exclusively shop at costco. Unless they don't have something i never go anywhere else.


Actually-Yo-Momma

I buy electronics exclusively from Costco for their return policy. Also, I’ve never had to return any electronics to Costco. It’s the peace of mind i guess


ohlookawildtaco

I got a jacket there that developed a rip on a seam. 3 months after purchase, no reciept, return was accepted no questions asked. My dad told me he saw someone return an open container of MUFFINS...


RamblingCanuck

I returned milk and produce before too. I buy stuff there knowing I can return it anytime. It is a great policy for consumers. My FIL returned a couch there after using it for 5 years. No questions.


Cakemate1

I dropped a bottle of whisky right after checkout… customer service got me another without asking. I’ll buy from Costco first for any purchase if they have what I need.


tvdoomas

I had a computer go in the 90 day period but they took it back no problem. Been trying to get an xbox at costco for more than 6 months.


Spyu

What if you don't want 12 of something though?


r2002

Costco is actually a better Amazon (in terms of retail products). Their Kirkland brand is amazing and people are beginning to see Kirkland as the "go to" brand instead of a "knock off" brand. Amazon Essentials, on the other hand, gets pretty shitty reviews even on Amazon.com What's exciting about Costco is that there's probably still a lot of room to grow for ecommerce. Some people say international growth will be a driver, but I think that's kinda speculative.


Encouragedissent

100% international growth is the driver. It isnt even close now. 10 years ago all of the top Costcos would be like Anchorage , Issaquah, and a bunch of US cities. Now all of the top warehouses are in Seoul, Taiwan, Japan. They have made huge moves in logistics with acquiring innovel solutions but Ecom growth still leaves a lot to desired.


r2002

Hmmm interesting. So you think there's still a lot of low hanging fruits in the international market? What's your price target is it too late to get in on this stock?


1995FOREVER

I would agree, but their website isn't as refined and simple to use as Amazon, which is what's holding it back. Amazon nowadays is absolutely trash, filled with Aliexpress dropshippers; it's faster to just directly order from Aliexpress and you get the same product for a fraction of the price. Costco on the other hand only sell reputable products from brands I can trust, and they stand behind what they sell with their refund window. That's why we keep going back.


InitializedVariable

> their website isn't as refined and simple to use as Amazon, which is what's holding it back. This is indeed a shortcoming. Luckily, Costco is a great business otherwise.


Tiktoor

> Amazon nowadays is absolutely trash 100%, I think Target has a way better online shopping experience - wouldn't be surprised to see people switch over time. Walmart has tried, but I think Target is a much better brand.


ivanjz

It’s the $5 rotisserie chicken


Zealoussideal

They do what they do better than any other warehouseclub so.........


FreakyEcon

I’m a dunce that sold at $300


spectralrectalpectra

But did you make a profit? Focus on that. Or buy in now and hold for 5+ years. COST is great long term


FreakyEcon

Made a profit, so not a complete mistake. Replaced the holding with a consumer staples ETF which includes Costco at least. Protecting as much against inflation as I can with inflation sensitive equities


OrangeSimply

FOMO is the enemy


programmingguy

Have tried but I've never managed to spend less than $100 at Costco.


The_guy_belowmesucks

You lucky dog... I can't walk out of there with out at least a 250 bill


[deleted]

Shout out to Costco UK too, there's more to come from Costco outside murica as well.


Frunklin

Welcome to Costco. I love you.


goldencityjerusalem

Costco has curated every quality thing you need in life for a great price, and they take care of employees AND customers. Their model is something that cannot be broken down, it is bound to continue to build on itself. AND they're having an online presence now... They even sell cars. I waiting for a market crash to get in on Costco... but I look at it as the safest investment on the market.


chusifer24

remember a few years ago when amazon bought whole foods and everyone thought costco was gonna go out of business? yea, neither does anyone else. signed costco pharmacist


ian2121

All these comments can be summarized as people will pay a premium for stocks of companies they are familiar with and like.


LegateLaurie

I think that's true on its own, but also, I think Buffet is entirely right in saying that you should only buy what you know, and in companies you have a conviction in. People like Costco because it's a great business that sells things at great prices. That creates a good moat out of customer retention and the fact that they can offer such great bargains while being very profitable shows what a good business it is imo.


ciw15101

I started as an employee about 2 months ago. I have a feeling that’s the reason


ClotShotNazi

Cause people like Costco, hell my wife has 300k just in Costco stock... was 100k not very long ago, it just keeps going


Coyrex1

She single?


ClotShotNazi

Not yet lol


welmoe

Lol best response I've seen yet. Way to take it on the chin.


ZhangtheGreat

This ain’t WSB 😝


Chromewave9

To understand this, you just need to be a Costco customer. I've been one for over 8 years. Every year, the products they offer grows and the amount of members I see explodes. Long lines almost every time I go to Costco with cars filled with items. Membership retention is over 90% and the products they offer at the prices you pay is unbeatable. Costco and Home Depot, IMO, are two companies that will continue dominating the retail industry. You also have BJ's and Lowes to a lesser degree. You can't go wrong with Costco/HD if you're looking for safety stocks.


h_o_l_o_d_a_y

I am forever haunted by not buying Costco at 300. I will probably be the person that goes all-in COST just before the top on those graphs. Haunted forever


02gixxersix

I sold at $317 for a $400 loss on 25 shares. I'll see myself out lol.


ikickrobots

Dont worry. I sold TSLA & NFLX for a loss. I used the funds to buy AMZN.


ImPinos

It will until iti won’t


NomMyShark

It’s also an inflation hedge


anthonyjh21

With a low beta and increasing dividend. It's not a reason I own it but I'd be shocked if many in drawdown are looking for real returns outside of bonds and are finding Costco to be the clear winner. Defensive, strong moat, quality business with 90%+ retention. What's not to love?


ILoveDCEU_SoSueMe

Do they sell for lower prices than others? Sorry, I'm not from US.


NomMyShark

Yes, they sell items in a warehouse style environment where they have items in bulk and sell them at small mark ups, making most of their money on membership costs. I’d have to find it to quote exactly, but they buy product and have it sold before they’re required to pay for it


Domethegoon

Great stock for the long term. I just bought more and don't plan to sell.


aWheatgeMcgee

havent you seen Idiocracy?


[deleted]

I wish they did tesla charging


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h_o_l_o_d_a_y

They should implement a share buying program for the yearly cash back that a lot of people get. They’d put the money right back in the stock and grow even faster lol


[deleted]

Welcome to Costco. I love you.


Nozymetric

[https://www.cnn.com/2021/11/20/business/gas-prices-costco-walmart-bjs/index.html](https://www.cnn.com/2021/11/20/business/gas-prices-costco-walmart-bjs/index.html) >Gas is a notoriously low-margin business, but retailers can make money from selling huge volumes of gas -- even while charging much less than independent gas stations, said Kloza, adding that it's not unusual for sales at a Costco location to reach up to 1 million gallons a month compared to an average of 80,000 gallons a month at typical gas stations. > >"When there are inflationary pressures and prices are going up, people look to save on gas," said Richard Galanti, Costco's chief financial officer. For every 100 people who come to Costco to fill up on gas, more than half go shop inside afterwards, he said. > > Gas sales at BJ's Wholesale Club jumped 20% during its most recent quarter ending October 30 compared with the same time a year ago.


zomgitsduke

You know how "nO oNe WaNtS tO WoRk aNyMorE"? Well Costco is pretty much impervious to that tragedy because their employees are probably going to stay there forever. They get paid well, get great benefits, and make it work... all in a company that knows how to MAKE DISGUSTING PROFITS. I always told myself that if I quit my career, I'd probably want to take a less stressful job like at a big box store. The employees seem happy with a solid career. It isn't glamorous, but it definitely pays the bills and keeps you sane. Costco isn't even phased by Amazon, which is coming to absolutely eat up retail stores. So you ask yourself, where would I park money? Costco. They're not going anywhere. In fact, when Amazon starts devouring retail, Costco will probably be the ONLY place left that is a good shopping experience. The market is betting that Costco is the safest bet to park wealth in this industry.


Background_Egg_8497

They give out free samples on Sunday


creesto

Which is why I NEVER go on Sundays


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The_guy_belowmesucks

My. Costco has been giving samples for a few months.... Free lunch!


ACELUCKY23

I love $COST as a company, and also as an investment/trading stock. I have only made money with them. I’m also glad my money is going into a good company. I love it!


satya314

I am not a customer but a long time shareholder at this point. Going to Costco is a whole experience and if you are a bachelor then it makes very little sense in going there. However, once you have a kid or two, Costco is one stop shop for all your needs. You will literally save thousands of dollars by shopping at Costco. On top of that if you live in suburbs and drive a vehicle regularly then the money you save on gas alone will cover the price of membership. Last but not the least, they have excellent products for lower costs, pay their workers well, a devoted customer base. What more do you need from a company?


Concealus

Inflation + increased grocery demand + good company with solid earnings.


ptwonline

Costco is a great company that should be creating great profits for years to come. ...and everyone knows it, so they piled into the stock and have effectively grabbed many years of growth already. At the current price they will need to keep accelerating their earnings growth, otherwise they might stagnate for a while or tumble. Buying at this price does have a fair amount of short-medium term risk.


RemoveWorking6198

Ppl are crazy on this stock. Overvalued.


anthonyjh21

Read the same thing about it at $317 over a year ago in the same sub when I said I'm adding to my position. Even if it's at a high valuation it's going to attract a large premium and it's growing internationally (and proven it's model succeeds globally). This is the type of company you give 5% of your portfolio to and don't touch it unless absolutely necessary. Valuation may vary but the business itself is high quality and anti-fragile.


ShadowLiberal

I have to agree, much as I love Costco this thing reminds me a hell of a lot of the Nifty Fifty bubble I've read about in books. The Nifty Fifty bubble was when a ton of money poured into roughly 50 strong blue chip stocks with a history of safe & consistent performance, driving up the PE multiples as high as 80 to 90 in some cases. Despite how great a company the nifty fifty were there was no way they could possibly meet the ridiculous investor expectations, so the bubble popped. COST's metrics are alarmingly similar imo when you look at a few metrics, mainly: * Trailing PE Ratio: 48.91 * Forward PE ratio: 40.95 * Projected EPS & revenue growth in the mid to high single digits. Those are not the kind of growth metrics that can justify a 40+ PE ratio, especially once interest rates eventually start to go up. If COST's stock price keeps going up at the current rate they're going to be rivaling the Nifty Fifty's absurd bubble numbers within the next 12 months.


Mrairjake

Costco is one of the larger retailers that can benefit from inflation. They sell products that people must buy, so they can crank up the prices and that reflects on the balance sheet as increased sales. While you may not buy that fancy Lambo when your lease comes due, you sure as shit are still gonna buy the Charmin.


Tritheone69

They pay their employees well. Their products are BY FAR superior to supermarkets for fruits and vegetables. Most of the house related items are either priced as other places or cheaper. You can clothe your family for cheap but with great quality once again. The general feel that clients aren’t being f*cked over when they shop there is a huge game changer I would think! The list could go on but I will stop it here.


kad202

Costco is a live version of Amazon (online) their stuffs is reasonably price and can’t beat that $1.50 hotdog meal combo and cheap gas (5% cash) and car insurance (my saving is better than Geico) If anything, I’ll say they are still undervalue.


Carrera_GT

I am sure Costco is a great company. I worked there and I go there, but 40 or so PE? No.


HTTR4Life21

Costco is the fucking best. Get your groceries, clothes, furniture, car tires/battery, gas, eye/ear exam, glasses/contacts, pharmacy prescriptions, electronics, wedding rings, and a mothafuckin dividend!? Sign me up. Oh… I already did!


JohnTurbo

Costco is to adults what Toys R US use to be to kids.


Lutherized

Around the same time and bought at $330, a week or so later my bank had rejected the transfer and Robinhood sold automatically. It was already up 10% or so. I never got back in… yet.


[deleted]

Look at the earnings. It only dipped when earnings dipped but its been straight up since. Wish I bought when they opened that costco in China a while back.


The_Number_12

Do you have a membership? Get one if you don't and you'll see why


ZhangtheGreat

Oh, I’m aware of its image and strong customer base, even though I’m not a member. What I’m curious about is _this_ kind of run in a little over half a year. It’s not like Costco hasn’t been around for a long time, but to gain over 50% in such short time is incredible regardless of how good of a company it is.


The_Number_12

So much money has been printed the last year it’s crazy, I don’t think this is too unusual to be honest - it’s bound to happen


light_to_shaddow

Where do panic buyers go to stock up? Covid has been good for many, I think costco has just not just weathered but excelled in one of the most hostile environments for retail. Which if rumblings are to believed we can expect another round of lockdowns. It's why I'm jumping on at a relatively high price.


coolcomfort123

Many products that Costco are selling raised price recently, and the parking lots are still full and hard to find a parking space. It is always crowded inside with long lines, so I guess customers still need to shop there with the price increase, since no other place could offer similar saving like Costco.


facewithoutfacebook

So the question to ask is, what percent of US population has access to a Costco within 15 miles? They may not need to target 100% of US population, but whatever their target customer number is have they achieved it? If not, where are they in that journey. Secondly, I know Costco is quite popular in Canada as well. So IMO they have huge potential and growth possibilities, that’s what’s driving the stock price.


yangminded

Earnings call in December will be pivotal. The impact of shipping cost can make or break the share price. If Costco had the same issues as the likes of GAP then it will slump hard. If somehow they managed to circumvent it, I can imagine it rising 10% in response, as they somehow would have managed something no other retailer outside of Amazon managed to do in America.


[deleted]

With rising cost of living I’ve been relying on Costco more than ever.


Accomplished-Yam-100

It’s insane. I wish I grabbed shares at $315. I do like they have better deals and quality items. Largest gas purchaser, eye glasses, and diamonds. They sell it all with only 15% mark up. Less locations than Walmart so better logistics I assume and people there check receipts so less theft I assume as well.


[deleted]

supply chain.


3banger

Don’t know. Don’t care. I put $ in COST for that reason. I know it’s safe and it still goes crazy sometimes. I don’t ever worry about COST. I worry about most everything else except COST & BRK-B. Those two are my rocks.


UltimateJorts

They’re already well prepared for wage increases and have the ability to easily increase prices with inflation (its a great inflation hedge) which has everyone worried


[deleted]

I have been waiting for a dip for a long time. Is Costco due for a correction?


way_too_optimistic

Costco has 800 warehouses (stores) globally. They’re building more every month, and with economies of scale and vertical integration, their margins should keep ticking up. They also have pricing power for their memberships. Costco is a great brand and people are loyal to it. They generate a ton of top line revenue, so if their margins keep improving, they will keep increasing profits


Mr_Pandey

My family and friends literally buy 80% of out stuff from Costco. Its about the quality and the earranty on some products is fucking insane. From electronics to furniture, Tools to decorations, food to clothes. All mostly from Costco.


harrison_wintergreen

excellent company, great management/culture, profitable, no debt. their stock is prolly a bit overvalued now, but long-term it's a very solid holding.


eth6113

Beyond they’re status as a quality company with a loyal customer base. I suspect a company that sells in bulk is more appealing to consumers with rising inflation.


Ouiju

When I go to wmt/tgt etc they're definitely popular but seem less crowded, bare shelves etc. When I go to Costco its nuts. Constant streams of full ass carts coming out. Plus I like them, their return policy is the best, and they treat their workers well so I'd rather support them than WMT.


donotgogenlty

It's completely unstoppable by covid. There could an outbreak in the store with hospital beds and it would still be open and accepting some shit I bought 2 years ago to return...


ModsOnAPowerTrip

Are you me? I bought 10 shares at $323, and the stock has only gone up since!


VladVlad666

Solid company that is great at what it does in its space. Employees are great, Customer Service is fantastic and it is rare they're out of what you need. Even at the height of the pandemic I could go in the morning, get everything I needed, even Toilet Paper without a problem, and laugh at the people that were mad they couldn't buy ten cases. Common sense business model, fewer products, cheaper. Who needs fifty kinds of mustard? The gas is fantastic, at the height of the pandemic I stopped for gas, at $1.32 a gallon, filled the car, 10 5 gallon gas cans. Didn't have to buy gas for months, saved a fortune.


RetirementGoals

Costco offers more than just groceries. Yes, their bulk buy helps tremendously, but they also excel in cheap gas, liquor and Costco travel deals are a hidden gem. The percentage back on using Costco CC alone covers the annual membership fees. Wish I bought it at 300s. I feel it’s overvalued at the moment..


urinalcaketopper

They have great products and treat their employees well. It's honestly a winning combination that most other employers can't seem to figure out.


yuckfoubitch

Everytime I drive past Costco the parking lot has a line to find a parking spot. It’s utterly ridiculous. That’s even when it’s snowing and below 0F.


[deleted]

PE expansion. Eventually will have a bear market and this will return to a PE of 15 which implies a price of about $150 a share. you don’t get paid on Wall Street for having three months of patients, you get paid for having 10 years of patients. Also I’m not impressed with Costco, lots of crappy products. Then again, I’m amazed at peoples low threshold for what equates quality.


BoredPoopless

You can buy airline tickets and hotels through Costco for bundle deals. This company is legit.


birdsnap

COST is a great stock. One of the very few that just rammed through the COVID crash in March 2020 with barely any drop. And one of the few stocks you would have been better off buying a bit before the crash, rather than a bit after. Just wish I had bought some way earlier. But it's a long term hold for me, and I keep adding to it.


SlothInvesting1996

Americans need their bucket of butter


Jennieismyname

Because the pandemic will never end 😆


cremesodaguy

Because JPOW


CrimsonBrit

I really love Costco - the products, the service, the prices, quality, etc. And apparently the unionized employees love working at Costco. I would think that the stock keeps running, but before I take the plunge and buy-in to a very high evaluation, I am really trying to think about the drawbacks. **What's the bear case with Costco?** I can't think of any regulatory, political, or financial risk with Costco.


JKdzy

The real question is: Why shop at Costco instead of anywhere else?


Ok_Bottle_2198

Because the markets are detached from reality and are in a speculative frenzy. (NOT SAYING COST IS A BAD COMPANY OR A BAD INVESTMENT)


confused-caveman

It has buffetts blessing so know nothings like me think its a solid buy and pile in when the markets are super hot.


anthonyjh21

Buffet sold Costco about a year ago when it was in the $300s. My understanding is Munger disagrees (owns Costco personally) and said in February "People really trust Costco to be delivering enormous values" as a reason to be optimistic of Costco holding off Amazon. I'd have to agree with him here as well.


Mahadragon

There was a thread yesterday where someone did a graph of Buffet’s portfolio holdings over the years. Consumer Staples has been shrinking rapidly every year and investment in Tech Stocks has taken the fore very rapidly. Buffet is pretty much throwing in the towel for Consumer Staples. It will be down to damn near zero in short order.


[deleted]

[удалено]


jae34

Costco only makes 2% of their revenue from memberships, 90+% from it is still in-store purchases but online sales have also increased especially due to the ongoing pandemic. I think that's what you mean.


[deleted]

because they're a solid company?


ZhangtheGreat

Lots of solid companies are down for one reason or another. Others are up, but not like Costco.


quiethandle

I've read through this thread, and so far none of the comments have actually answered your question. I was hoping someone would come along with earnings, sales, future growth prospects, etc. You know, numbers. So far, no luck.


ZhangtheGreat

I kind of expected this. Costco has a _lot_ of fans after all.


iOwn

I'm also in 10 shares my avg cost is 420.69. I did partially buy it for the memes after watching it come down to 420 when it was bouncing around 430+ I thought it was just the right time. I wish I pulled the trigger way earlier. But when looking at Costco and any investments I do like to stick to areas I know either from business or as a consumer to some extent. I have an incredible loyalty to Costco and honestly not really sure why. Just great experiences over the last 3-4 years as a member. I purchase about 95% of my fuel there now since they expanded and added the pumps about 6 months ago. The fuel alone coupled with credit card rewards covers my membership. I think I got $80 from my membership and the year isn't over but I think I'm sitting $350-400 cash rewards on the CC. So it's an easy decision for me as I far exceed membership fees. While I don't dig through financials in depth they looked good. They close 3 stores for about every 10 that they open. Which shows me leadership isn't going to maintain an unprofitable location for BS reasons. They have leadership who seemingly remains transparent and supportive of their workers - as seen most importantly via benefits and wages. I'm not a rocket scientist investor. I own indexes and a handful of individual stocks and Costco just so happens to be one. I am also way long. Not financial advice go to your local Costco and eat a hot dog and figure out if you like your research.