Costco Wholesale Corporation (COST)

One of the favourite names in his portfolio, one of his favourite places to go. Fantastic technicals with higher highs and higher lows. Valuation of 53x forward PE is up there, premium for a premium name in its own space. He's trimmed. 10-12% earnings growth rate, which sounds expensive but it has no real competitors, not even WMT.

Spectacular company, huge competitive advantages. Trades at 60x earnings. Problem is there's nothing he knows about COST that everybody else doesn't already know. He's always looking for an edge that the market doesn't have; if he can't find it, he doesn't buy.

Its P/E is high at 50X earnings which used to 36X. It is a dominant player but revenue growth this year is only 5%. It probably goes sideways so wait for a correction.

Was upgraded today. They have amazing e-commerce while Walmart has faded. A top-25 company in the world. Must own.

Stay with it. They have the right model for the consumer in this economic climate. A long-term holding for him.

Very good business, but the valuation is very high (~50x earnings). Would recommend investors wait before investing. Membership business very strong with excellent product offering. 

Defensive retailers have been picking up in relative strength. DOL is #2 in Canada, COST is #1 in the US. WMT is also moving up into the top-favoured green zone, now in the top 10 of his RSI universe for the US. Yield is 0.5%.

Superior retailer, steady and consistent revenue and bottom line growth for at least a decade. If you don't need cash tomorrow, it's always been a mistake to sell. Not huge growth (~6-8% topline, 11-12% bottom line), but growth nonetheless quarter after quarter. 

Historically trades around 30x earnings, a deserved premium. Announced subscription increase and stock took off along with the multiple at close to 50x. Lots of exuberance in the stock, be cautious. Wait for pullback to $700 level.

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.