Costco: A Warehouse of Value, or Just a High Shelf?

Shares in the membership-based wholesale retailer have, defying gravity and common sense, risen about 15% this year. Investors, it seems, are beginning to appreciate a business that reliably sells stuff, regardless of whether the world is ending, starting, or simply having a particularly grumpy Tuesday. The combination of low prices, a membership fee (essentially a small annual tribute to the gods of bulk purchasing), and the relentless demand for everyday essentials – the stuff that keeps civilisation from collapsing into a heap of unpaid bills – is a potent brew. It’s the sort of business that thrives when everyone else is panicking about the price of digital sheep2.








