Karen Firestone, CEO, Aureus Asset ManagementCostco Wholesale CorporationCOSTDON'T BUYMay 29, 2026

He wrote an in-the-money call at $985. It was trading over $1,000 yesterday down to $950 today. He covered half the position and just closed it out at $5. He netted a $22 profit. Earnings were good, as expected. You can add to it at these levels, despite the high PE.

Both great companies, but both very expensive. COST is over 50x PE, and WMT's in the 40s. Fairly low-margin model. Reliant on the consumer, and everyone's affected when that consumer is struggling.

WMT reported today. Earnings were OK, but projections on future quarters were tough. High fuel prices were highlighted.

No valuation concerns, as it's been expensive every day he's looked at it over 30 years. Compounded shareholder total return of 17.5% since its IPO. Third-largest retailer in the world. Procurement clout and supply-chain efficiencies produce gross margins of 11%. Still expanding store count. Periodically increases membership fees. Superior same-store sales performance driven by traffic and basket size.

Lots of ways to win. Yield is 0.59%.

The only consumer staples he owns are COST and KO, which are still growing.

Leave some $$ in your technology sleeve to allocate to one of the end users -- an industrial (TT) or big US bank (JPM or Citi) or retail/logistics (WMT or COST).

A good name to hold in consumer staples when people panic about market volatility, recession, or the like. Defensive plus steady growth. Runup since January, now trending sideways. Business model is what makes it stand out.

Sees ~11-12% upside from here. Of course, that could change. Ranks 10/10 for her.

Sold it back in October, at just a bit lower than trading right now. Great business model, but the valuation was overdone.

Sold when the PE got crazy. Still a great business. Very expensive. Mag 7 will grow faster than COST.

Some said renewal rates weren't up to snuff, but whenever the price of gas jolts up, you buy Costco. But this current spike means you should wait on Costco.

Loves shopping here. They report Thursday. He wants to know how many people are renewing their memberships. 

It had a rough 2025, but up 16.7% this year. He loves their runway with the membership business. Still likes it long term.

Consumer staples space in the US has really been all about COST. Uptrend, then down, now recovered.

Wonderful business, adds a lot of value for customers. He struggles with the valuation, given its growth profile. To get a good longer-term return, you need earnings growth and multiple expansion.

WMT, as well as COST and DOL, are very defensive havens for investors. That's bid up the shares. PE ratios for the three are all north of 40x. With just a slight moderation in the PE, the overall return will still be flat. He'd be interested on a significant pullback. Be patient.

Is one of the greatest businesses on Earth. Customer satisfaction is off the chart, but at 50x PE the stock is too expensive. Not worth holding for 2 years, but 20 years, yes.