No. of Recommendations: 1
I went looking to see if anyone was discussing valuations for COST and if not for the BRK (Berkshire Hathaway) board, I would have no luck at all.
Maybe those paying attention to this fine company and its stock price could ring the bell for everyone when its price falls into a spot where we can hope to make money on its financial performance and not on market-expanding P/E ratios and such.
Been looking for an entry point for nearly 10 years and haven't found one with any margin of safety. A shame, since I'd love to make this company a permanent holding.
SD
No. of Recommendations: 1
I’ve held COST for about 5 years now. The valuation is ridiculous, but the company is incredible. Would love to see discussion here.
abromber
No. of Recommendations: 2
Maybe those paying attention to this fine company and its stock price could ring the bell for everyone when its price falls into a spot where we can hope to make money on its financial performance and not on market-expanding P/E ratios and such.
That’s probably not gonna happen. I’ve owned it for 15-20 years, I forget, and there has not been such a time except during general climatic market dump, i.e. in 2008 when the economy froze, and in 2020 when the pandemic hit.
Otherwise it’s a fine company with a terrific business model, which treats its employees and customers well, and is forever expanding, albeit slowly. There are not a lot of holes that are going to make it take a quick dive so you can profit on a bounce, at least unless there’s a significant recession and investors get scared. I don’t even see the looming tariff imbroglio as particularly threatening (the way it is for, say, WalMart or Amazon) because they have a much more limited palette, and can mostly avoid a product with a sharp price spike in favor of something else which doesn’t have it. And Costco customers, (again unlike WalMart, et al) are not used to having “every product every day”, so if one goes missing, well, there’s something else to fill the hole.
But frankly I’m not sure that I would be buying more at these levels either. For me that’s because it has grown to be a large fraction of our portfolio s I don’t need more. For someone without, the p/e expansion would give me pause, but that said, I like companies which are well run, offer value, and treat customers well, so…
