Posted on 01/20/2025 11:59:42 AM PST by BenLurkin
AGREED
THAT IS A SKILL
I’m going to credit the cake decorators with being skilled labor. And maybe the forklift operators and the mechanics in the auto section, although I know the services offered are basically tires and batteries.
“BTW...if one wants to share in Costco’s profits, one can buy Costco stock like everyone else.”
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With a P/E over 50? How many years of earnings would it take to break even on your investment? Costco has terrible valuation metrics. No thanks.
I thought the same thing when I bought it 4 years ago. And it’s more than tripled. Costco is a growth stock, not a value stock. Gotta pay to play, but it’s worth it.
DEI company can’t keep its leftist staffers happy.
Surprised?
I used their auto buying service once too. Probably not the absolute best price but I was out of the dealership in 2 hrs.
They are some of the mostly highly paid unskilled workers anywhere. As a member of this organization, I hope this backfires on them big-time.
I was in and out of the dealership in well under 2 hours.
Told them the total price I was going to pay, that I refused all their b.s. charges, and I had a check ready to go for the net. If they had any objections, I would walk.
They took the money.
Used it for my daughters out of state purchase... gets you directly to the Fleet Mgr and a set percent off invoice, so it cut out the add on’s to a unfamiliar female at the crooked Finance desk. Worth getting a written offer for if you want to shop it! ....ymmv
“Gotta pay to play, but it’s worth it.”
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At this price you’re paying dearly.
COST has had a run up of about 90% over the past two years. Its been a great stock, no question. But at this point its become momentum driven as its fundamentals are deteriorating.
Nothing wrong with buying growth at a reasonable price mind you, but Costco has gotten overly expensive in terms of many metrics.
I can understand you sticking with it but I’d never invest in it at this price level. Its hard to make a good return when overpaying for anything.
Best of luck to you.
Want to deport illegals, h1b overstays and PRC spies, go to costco on the weekend!-)
“maybe the forklift operators...”
I drove a forklift......you can consider that unskilled. 😏
It doesn’t take much skill to slice a steak 1 inch thick on one side, tapering to 1/4 inch at the other.
I totally understand. But I’m a long-term investor. I have a 10 year timeline, and I think the company is poised for continued very strong growth.
The non-union workers are wstching to see how they are treated....that will spread the union as I forsee stupidity on the corpirate level unable to help itself.
They just got a new CEO. Costco used to have a very customer focused leadership team. This new person is from Kohls (I think) and he is a “retail” bean counter.
Whenever I see a company turning their reins over to the beancounters, it’s usually means they are about to take a turn for the worse.
The butchers were likely the first union in.
I have a stock with a nose bleed P/E that’s about the same as COST. As with you its a long hold and I have dug deep into the company’s fundamentals and catalysts for continued growth so I too am comfortable with it despite its high valuation.
As a general rule I pay a lot of attention to valuation metrics as stocks have a strong tendency to revert to mean.
That said, I understand where you’re coming from.
Good point there. The beancounters often lack business acumen and managerial skills.
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