Costco’s Rather Spiffing Performance

Now, Costco Wholesale, you see, is a bit of a phenomenon. Along with the usual suspects – Walmart and Amazon, dashedly efficient chaps both – it’s become a leading light in the retail game, boasting over 900 warehouses scattered about the globe. A jolly good show, and a decidedly profitable one for those clever enough to have taken a punt on the shares.

The question, naturally, arises: if one had, say, a modest hundred dollars to invest a decade ago, what sort of return might one be enjoying today? A most intriguing conundrum, wouldn’t you agree?

Well, prepare to be pleasantly surprised. Over the past ten years, Costco has delivered a total return of no less than 682% (as of January 27th, naturally). This means that our hypothetical hundred dollars would have blossomed into a rather handsome $782. A truly ripping success, and one that rather leaves the performance of the S&P 500 looking a bit… pedestrian, shall we say?

It shouldn’t come as a shock, you see, that such gains are rooted in solid fundamentals. Costco has expanded its warehouse network at a positively breakneck pace, leading to increased merchandise sales and a membership base that’s loyal as a trusty Labrador. Consequently, the company is registering net income figures that are, quite frankly, rather impressive. A most satisfactory state of affairs, all around.

However, a word of caution, if I may. Before rushing in to acquire Costco shares, one ought to exercise a modicum of restraint. The stock, at present, is trading at a price-to-earnings ratio of 52, which is, to put it mildly, a bit on the toppy side. A sensible approach, therefore, would be to await a substantial pullback before even contemplating an addition to one’s portfolio. Patience, you see, is a virtue, particularly when dealing with the vagaries of the market. A dashedly clever investor knows when to hold his horses, what!

2026-01-31 18:32

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