Costco Wholesale Corporation (COST)

He has yet to find a better business model in retail. Uses scale to secure low prices, which they pass along to consumers. Sales of Kirkland brand are twice that of KO. US is 3/4 of the business, 900 stores worldwide, opening more.

Always too expensive, but has pulled back in last little while. Getting close to 30x forward PE, so starting to pique his interest.

Shares have lagged lately, but historically has been strong. Trades at 44x PE, which high in this market. (Walmart is 40x.) COST is never cheap, but is a partial buy under $900.

Used to own this name, but came out earlier this year. Leaking like a balloon, trading below all the moving averages. Don't put any $$ to work here until consumer sector starts performing better.

Look at the sector. He has virtually 0% weighting in the consumer. From homebuilders to retailers to restaurants to leisure travel to airlines, all are performing poorly. WMT has been the standout in the group, but COST is not.

Never cheap. Now trading at 45x PE. You can start a position now. Is the best buy in the industry, but is hurt by a magazine story saying that the best times are over. A good stock.

Nice run, starting to come over. May have had a double top, look for $1050 to be significant resistance. Old support range looks like $860-900. 

Sank 2.9% today one earnings. However, revenue, EPS and comp. sales beat. Are seeing more younger members. To combat tariffs, are altering their supply chain to hold down prices. It's absurd that the street is punishing them for disappointing renewal rates of online subscribers--this is an excuse to sell. Charlie Munger was a massive shareholder of COST. Over the last 20 years, has returned 19% annually--one of the best stocks ever--vs. 11% by the S&P. With this pullback, it is cheap.

 They report Thursday. Likes it, but they are stuck in purgatory with a high 53x PE. Wait for it to fall below 50x PE. Expects more downside.

Likes the company, but has never owned the stock. It's always been screened out because of valuation. Trading today at 53x PE on this year's earnings. Great business model, and the street recognizes that.

You have to look at these companies in terms of what can go wrong. If we go into a sustained, negative economic period, there's going to be a lot of hurt on a company like this.

Has maintained a premium valuation for a long time. If you're a growth investor, you could buy this one, but he's not wild about the valuation. Wait for a market correction.

The PE is high, they can add 20-30 stores a year for 20-30 years. A huge runway worldwide. They do all they can for employees and shareholders. One of the best businesses in the world.

The PE is high, they can add 20-30 stores a year for 20-30 years. A huge runway worldwide. They do all they can for employees and shareholders. One of the best businesses in the world.

The PE is high, they can add 20-30 stores a year for 20-30 years. A huge runway worldwide. They do all they can for employees and shareholders. One of the best businesses in the world.

The PE is high, they can add 20-30 stores a year for 20-30 years. A huge runway worldwide. They do all they can for employees and shareholders. One of the best businesses in the world.

The PE is high, they can add 20-30 stores a year for 20-30 years. A huge runway worldwide. They do all they can for employees and shareholders. One of the best businesses in the world.

Great operation. Steady membership and store buildout growth. Very expensive; 45-47x PE last time he checked. Too high of a bar for him as a value investor. Risks of supply chains, labour, inventory, tariffs.