Costco: Buy, Sell, or Hold in 2025?

Dear Diary,
Today I find myself staring at Costco’s stock chart like it’s a cryptic love letter. Is it a treasure map? A warning sign? A reminder that I once believed in the power of bulk buying? Let’s dissect this with the seriousness of a person who once tried to invest in a cryptocurrency called “Dogecoin” (shame).

Units of Cryptocurrency Lost: 12.
Hours Spent Watching Charts: 9.
Number of Panicked Texts to Friends: 24.

Costco Wholesale (COST) is the kind of company that makes you want to write a sonnet about membership fees. It’s the retail equivalent of a cozy blanket-reliable, a bit indulgent, and slightly overpriced. Over the past decade, it’s outperformed the S&P 500 by a mile, which is like winning a race against a sloth wearing a backpack. But here we are, 2025, and it’s only up 4% this year. A yawn, really.

Buy Costco? Well, it’s a fortress of customer loyalty. 93% renewal rate in North America? That’s like getting a standing ovation from your least favorite aunt. And let’s not forget the moat: low prices, bulk deals, and a membership model that’s as smooth as a well-aged cheese. But here’s the catch-its P/E ratio is 54. That’s not a number; that’s a dare.

Sell Costco? The stock is priced like a luxury handbag. Everyone wants it, but is it worth the price? The growth has been fueled by multiple expansion, not just earnings. It’s like buying a cake because it looks pretty, not because it tastes good. And let’s be honest, I’ve made that mistake before (see: the “I Will Be Disciplined” investment in 2020).

Hold Costco? It’s the Goldilocks of stocks-neither too hot nor too cold. The business is solid, but the valuation feels like a tight sweater. I’d rather hold it than panic-sell, but I’m not sure if it’s the best use of my money.

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Verdict? Costco is a long-term bet, but not a short-term thrill. If you’re looking for value, there are better deals out there. For now, I’ll keep my eyes on the chart and my wallet in my pocket.

– A Value Investor Who Still Can’t Figure Out Why Costco Sells Tuna in 50-Pound Boxes 🧾

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2025-09-23 05:24