Just to be completely clear. The best company in the world does not necessarily mean the best current investment in the world. I address this towards the end of the video. I’m not currently buying Costco because of its record high valuation.
Appreciate the clarification Joseph. Would you be able to do a video on which stocks are currently good to invest in. Everyone that I'm looking at specially in the tech sector seems to have high valuation and they continue to climb up.
Could you give us the costco price that you feel it's good to buy in and what do you think about Bj's stocks since they are doing the same thing? For bjs they are smaller than Costco.
Im mid video and I was actually going to ask: what justifies the recent sky rocketing price, and dont you think its way overvalued. I wil buy Costco, but need to go down a lot.
COST is awesome. I requested a gin they didn't carry at my warehouse and they were happy to add it. Such good customer service. Happy with my stocks and membership.
For me, i think getting a good entry point of a stock is important. if you do not know when to buy a stock, you may be helping others pump the stock while it’s dumping on you.
@@viviangall1786 Amazing coming across comments about Katherine on here. Just a quick thank you to her. Before I started working with her I was down, down and downer. This year alone with her platform I have doubled my small portfolio after consulting her online page on the web.
Costco may be the best company in the world, but that doesn't automatically mean that its' stock is the best stock to buy. Once you dig into stock fundamentals and realize how much historically overvalued it is, you'll realize that Costco stock is far from one of the best stocks to buy.
Agreed, no stock is worth any price no matter how good of a business it is. The fact that COST is barely expected to grow at all next year only farther compounds the problem with their high price right now. I'd much rather buy a fast grower like MSFT at that kind of a PE ratio, not COST. That said, I'd still definitely be interested in buying COST if it was trading at more reasonable valuation (i.e. a PE ratio closer to the low 30's or high 20's).
@@kingkong8974 holding costco stock makes sense only for people who are already holding shares, although if I was a shareholder I'd probably trim my position a bit. That's my personal opinion.
I would completely agree with you. You measure a company by how it treats its employees, then how it treats their customers and service provided. Then the balance sheet. Costco is very unique. They are good stewards.
PE ratio of nearly 50. I’m not a strict value investor but using the classic value investor metric (trailing PE) which I would use for a company like Costco, it’s priced high. I appreciate the Bull case but I’ll wait for a better valuation opportunity
Costco is the GOAT. High customer retention rates, high employee satisfaction, and generous return policy of any company I've seen. Always packed to the fullest. I'm hoping Costco stays around for years to come!
Costco's secret formula is their markup on any product is at a low percentage, at around 12 - 14%. Their store managers are instructed to not go above it, Unlike Macy's which usually markup to 100% + then mark down as products don't sell.
Joseph, I have been following this channel since early 2019 and I have seen all your previous videos but I have to say that by far this one is the best of them all. I love how you set up the topic and develop your point of view. By far the best! Although, I have to say that for me Tesla is the best company in the world though. 😜 Keep it up bro. Great work!
It’s a really positive sign that Tattooed Chef is in Costco and has been renewed. Costco only keeps top selling products and they would quickly be replaced if they weren’t selling well. Costco also usually has a great relationship with suppliers and they want those relationships to last indefinitely.
@@JosephCarlsonShow Problematically, i am located in germany and had no chance to try out their products. Considering its a food stock, i would at least like to know how it tastes before i put "8000 billion dollarzzz" into it :)
It is difficult to challenge this thesis. I sold CSCO a year ago at 390$ because whilst I loved the stock, I felt it was overvalued and couldn't see the future growth, but I was wrong. I still made a tidy profit, but must point out that Target has been a similar winner in the retail space within the last two years. Costco for me is the only retailer where I don't check the price of anything, because I have full confidence that baring special offers, Costco will never be beaten on price, I wouldn't say as good a shopping experience as Target. I will consider buying in at 400$, but yes valuation is too high presently. But yes great review, nice to talk about something other than Baba. Best regards Charlie
Hey Joseph, my wife and I own some Costco now and have been a little dissuaded from adding to our position due to a few videos we have watched where they used DCF models to determine fair value. Both showed Costco as overvalued at this time. I was wondering how much store you put in DCF valuations and whether you thought they were worth the time and effort. I must admit to being skeptical myself as every video I watch where they use those models there seems to be quite a bit of guesswork as to the numbers they use to come to those valuations. Thanks for a great video sir!
Tesla, Nvidia, Microsoft and Meta are my bullish holdings 😁 Consumer side I would have to say Costco since it’s been on fire. Can’t wait to see which is your go to stock.
Hey Joseph, can you explore more financial companies such as Blackstone, BlackRock, and Bank of America? I’m curious to hear your analysis on these, especially w future interest rate increases.
I think it's Apple for near future- humble CEO, aspirational premium tech products, cult-like customers, sticky APP ecosystem, and no controversial employee treatment. Only real slight is they manufacture in China.
Great video again! I like your video's, but I will stick to my long term plan of not picking stocks. I have 50% S&P 500 etf and 50% QQQ. So I already have like 2% COST😊. My goal is become a millionaire in 2040 with DCA each month.
Great leadership creates great companies, period. I've worked for many organizations during my career and sadly, none come close to the philosophy where the golden rule is: Your employees are your family, not a number. It's sad how many greedy owners and executives don't care about this important corporate idea. Combine that with smart business principles like subscription-based revenue and there ya go! It's not rocket science, but ego people that graduate with MBAs do it mainly for money and ignore the human element. They wonder why they bounce around from company to company for 40+ years. Remember your fellow human and treat them well and you'll be fine. Treat them as a number with zero respect and you'll always struggle as a business owner. They must get past the greed mentality and it's not easy for them.
Great thoughts. I like Costco but I don’t buy it because the PE is too high. Still is good option if your want to keep for long term (more than 20 years) my opinion.
The biggest mistake I ever made was not dumping my entire $10,000 reserve into Costco when it was at $310 because I was waiting for a better deal. Heck, I should have even sold some stock to have bought even more at that price not too long ago.
When you realize that he's just using the Patreon money ($10 x 2,178 members = $21,780 per month) to fund his account. The account is not based on any actual stringent investing that a normal viewer can replicate ($3,500 a month salary investing at 10% ($350)) I would still be interested to see the Funding History though.
It's not like he's hiding his funding amount. You see his % and the $ amount of gains, so you can deduce the funded amount. He's all about talking through his methodology and being transparent; he didn't create an account entitled "copy this account exactly with a $400/monthly disposable income." He does what he does and shares that with an audience. Some will have more than what he has to invest with and some will have less.
@@Ditronus. Very true, 352K - 72K = 280k but that turns into a very different thing when it's "I'm creating a passive income portfolio and I just deposited 10K this month into my investment account and you can do it too!" Essentially this is just watching a top 5% income earner invest.
@@matthewmelange love how he is handling the channel, although the portfolio growth is kinda misleading, both the total due to monthly funding and the % returns (M1 finance shows very confusing %). Nontheless, good for him.
So what? Are you upset that he has so much money or upset that you don’t? Should he continue to create great content but not profit off his work? Why are you trying to poke holes in the most objective, honest, and insightful investing channel on RU-vid?
@@rzadigi It's just not very impressive to get a 20% return over 4 years when the majority of his profit is really coming from 2,000 people paying for his investment portfolio rather than his investment acumen.
If you are truly in it for over a decade, I feel as though the potential for lost gains is worse than waiting for a dip. Allow me to explain: with a company as strong as Costco, you could wait months or years for a potential downturn in which you would buy (earnings miss tomorrow could change that, but still unlikely you see a 10%+ dip), meaning that during this time, you will be missing out on potential capital appreciation. Also, if you are in it for the long run, don’t petty yourself with waiting for a downturn, if you believe in the company, bite the bullet and buy. There is still plenty of room for this company to grow in the retail sphere, and they are strong as hell despite inflation.
I think that in our age range....assuming you're somewhere between 25-35......we should aim for a bit more risk and not just pick the biggest...past.....winners.......I get that they are all great companies hence the high valuations for Google, Amazon, MSFT, Costco etc. .... the entire market knows them and you can expect them to always be fairly priced or overpriced.... I would like to see you venturing into more 1-50bn market cap opportunities like your twilio position....
He won't. He gets a lot of money from patrion and discord and invest that in save companies. Have you ever seen the dude giving a real analysis besides newsletters and comparing a pe ratio?
@@yorgosprotogeros3541 Yeah I guess so...this is more slow and steady wealth growth..which is good.....but don't really expect to massively outperform the market
Costco is the best company in the world...blah...blah...blah. All those numbers are irrelevant. The reason why Costco is the best is because of their hot dogs. full stop.
Hey Joseph I totally agree with the points you make. You are by for the most responsible RU-vid financial channel, which is important in a world of get quick rich schemes. I had a question regarding your weightings on your top holdings in your portfolio. Do you not have a concern that you are too concentrated in your top holdings? What percent of your portfolio are you comfortable with one company getting up to? I always thought general recommendation is no more than 5%. Thanks for your time.
Hey Joseph, would you do a video to educate us investors on how to analyze a stock, look and fundamentals and P/E ratios etc to decide whether to invest in a stock or not. I remember you did a video like this for dividend stock selection using Seeking Alpha long time ago. In the video please also indicate what is considered a good P/E ratio etc and give us that info for all fundamentals you analyze.
You mentioned 10 years but what is your 10 year plan as far as Costco? For example, would you start to sell some and convert into higher yield paying investments? At some point, I presume you hope to live off investment incomes but what might that look like and when?
Currently COST is not performing very well with my other stocks, and it got the ax today....I will look for a good entry point and get back into it later
Great Costco analysis. Would love to see you look at the Very beat up VZ and T at 10 yr lows and yest they do have subscribers. Huge divs at very beaten down prices unlike Costco and the rest of the market.
I bought the Costco dip earlier this year wish I had more cash at the time. It has appreciated greatly. Now is a matter of waiting until for another buying opportunity.
I think Target is a better buy before Costco. Both are fantastic to have in your portfolio, but target's online approaches have really been taking strides, and they cater to quite a large middle class. Their only issue compared to Costco is most likely the credit card breach back in 2015, but that was awhile ago.
I'm a new viewer to your compelling channel. Do you have a video regarding your thoughts on where/why to place investments in either taxable or non taxable accounts ? TY
Its a fantastic business model yes. Best company in the world? Far from it. It's just a more optimized retail platform, doesn't even revolutionize anything at the scale and impact of tech companies. This vid is made for the "suprise" effect, not accuracy.
You're right about Costco loyalty. I live across the street from one and now I basically refuse to live anywhere that's not within a mile of a Costco. So my options are limited. haha. But yeah, I'm part of the cult I guess.
Best company in the world? But in what sense! I love Costco & a member from 2002. Costco priorities are 1.customer 2.Employees 3.shareholders, but only problem I seen with Costco is very slow adoption of Tech & Web services. I can’t use my iPhone to pay, gas station just started contactless/chip pay. But in my view best companies is who solving the biggest problems. Like SpaceX Tesla, Nvidia TSM etc
Outside of the US, Costco and big warehouse-like stores are almost universally seen in a pretty negative light. People generally prefer smaller, more personal, less de-humanized shops. So I wouldnt say they are that great a company on a global context.
One comment. When it comes to "valuation" and the statement that the valuation for Costco is high, you have to contrast that with the facts you've laid out in your post including that Costco is not in debt. Whatever valuation other comparative companies have, you have to take into consideration its debt. However, even if there are good companies with more attractive "valuations" with little to no debt than the final analysis is the fact Costco sells necessities like food while it also sells subscription revenue. There is no other companies that can compete with a company that sells the bare essentials to stay alive.
Surprised you did not mention Sams Club at all in this video, being that they are their biggest competitor. Wherever there is a Costco there is a Sams Club.
Wait. Costco is not a wholesaler. A lot of their products are not thoroughly tested, despite the low price. They only have a few products that are truly great and a good bargain. Costco is a membership organization. A lot of their products are unhealthy. Most of their food is unhealthy. Even their olive oil is not Italian organic. Their clothes are the best buy. You are right about the subscription. If they sold only premium products, they would be a great company. Walmart is better to their customers, even if it is not as profitable.
Joseph, Great video. Costco is a great company but it is wrong for you to compare Costco to an ETF. It would be great if you compare it to individual growth stocks. Compare Costco to Nvidia and AMD for fairness
Well, Costco is undoubtedly a great business, but is it a great investment? At this valuation IMO no. Great businesses are not automatically great investments and buying at any price whatsoever will hurt your returns.
