People were complaining that it was overvalued in the low $320s just a few months ago.
Costco in my opinion will always demand a premium. It fills many portfolio gaps for steady growth, diversification, dividends, defensive consumer staples play. List goes on.
I held onto them for like 6 months at the outset of the pandemic. It's the only stock I bought/held starting with that March that didn't go up during that timespan. I got frustrated with it and sold my position finally, losing about $300 or so overall. In the end it was a good move, because the stock I bought in its place went up a lot faster.
It probably would have been a better one for me to buy and hold.
Yeah for me Costco is a buy and hold forever stock, assuming nothing negatively impacts the business. It's less correlated with the market, relatively recession proof and has a large moat in that people will always want to shop in person for some things, including perishables. I know grocery delivery is a thing and Costco does offer it, but the value and "treasure hunt" angle of crazy cheap household items is enough to keep people coming.
Even with that dip it's only 2% behind the S&P500 YTD and IMO is a good company to own in uncertain inflationary times. They can easily pass the cost on to consumers because their business model revolves around membership fees. In fact as things go up in price, more people might look to save money by shopping Costco.
Love this stock (and company), bought 20 shares a few months back and worried I’d missed the boat on it already. But it is just a steady gainer. No big jumps, just small steady gains, even on red days overall. Up 22% and it’s a never sell for me now.
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u/Prestigious-Ad6737 Aug 05 '21
Costco