Costco Wholesale Corporation (COST)

Like an oasis in the consumer desert. Its value proposition is that it's the cheapest scale-buyer, and passes savings along to the consumer. A unit growth story. Trades at almost 50x earnings. 

When you think of growth stocks, think of their PEG ratios. This one is definitely on the upper end. Though quality of the business is about as good as it comes, there's a better entry point to be had.

There are 2 or 3 smaller brands that do the same thing, such as Sam's Club. COST used to trade in the 30s, but now it's closer to 50x. So if you own it today, you have to be ready for the 20-30% drawdown on just mean reversion on the multiple.

A fabulous company. They just raised membership fees for the first time since 2017 which they will likely reinvest. But it trades at 50x PE, which has always been his complaint despite this being a great company. Growth prospects are no higher than 10%. That isn't good enough. 

Tremendous channel of higher highs and higher lows. Price increase in membership fees yesterday. Doesn't see this changing the 90% loyalty rate, so that's increased revenue coming in. Bit expensive at 50x forward earnings, but likes it because really no comparison. Smaller SKU footprint gives them much better pricing power.

Current share price valuation very high. Growth not justifying share price. If company misses estimates, will suffer massive valuation cut. Risky at the high share price. Would not recommend investing at this time. 

They keep prices low by pressuring suppliers to keep them low. Plus, they always seem to be adding new products to their fine Kirkland brand.

Doesn't know if they're going to split, and it's not important to him. Valuation expensive, but worth paying up for (see his upcoming podcast on Monday for why). Everything they do is to improve the business long term -- cares about employees, tries to add value for members, great balance sheet.

Best retail business in the world bar none. 10K Walmarts globally, but fewer than 900 Costco stores and they're all busy. Goal is to open 20-30 new stores a year for multi-decades. Business model is very certain. Doing everything right.

Great performer, hitting all-time highs, continues to like it. Combination of steady earnings with good secular growth. No meaningful competition. Charts don't get better than this, a series of higher highs and higher lows for the last couple of years. 200-day MA trending higher, and price is above that. Overbought at 77 RSI, so not buying for new clients.

Earnings are pretty steady. 10% growth rate, decent. Member loyalty is astounding, price has been increased slowly over time. Pricing power is so powerful because they have fewer different items, but in higher volumes.

Great business model. Wide moat. Lots of potential in foreign markets. Could come back to the $600 level. Everyone should own some at some point. Yield is 0.6%.

It reports Thursday. He owns a big position and expects an excellent quarter. Wait because this stock tends to decline after it reports, then rallies several days later.

Excellent business. One of the top ten positions in portfolio. Stock price very high. Consumer discretionary spending down, but company offers compelling value. Many shoppers shifting spending trends to Costco with rising interest rates. Business has very strong business model. Would recommend holding for the long term. 

Fabulous company and great investment. Always too rich for him, trading in mid-30s. It would have been an uncomfortable ride for him, as it's a retailer with all that air underneath its lofty multiple. Unique business model.

A blue chip stock.

Shares ran up too far. Their business plan is simple: likely open 30 stores a year given insane demand. They just opened one in Shenzen, China. Are only 870 Costco stores vs. 10,000 Walmarts, so there's room to grow. PE isn't cheap, but 10 years from now you will be happy owning this.

It is a stable company which makes its money on volume and membership fees. The Kirkland brand itself generates a huge amount of revenue. However its valuation is quite stretched at 45X earnings.

She trimmed it before it declined last week after earnings. Really likes it, but Costco is expensive now.