Paul LarsonCostco Wholesale CorporationCOSTHOLDAug 22, 2008

Sometimes the best time to plant an oak tree is today. If you're trying to find the best time to buy, buy half now, and the rest on a downdraft. Well run, usually delivers. Short-term suggestion that it can come back into its range.

Not a fan of retail, except for this one. The best, well run. 

Recent pullback good time to buy. Excellent business overall. Highly valued, but a good long term investment. Could be better opportunities in Dollar General for capital appreciation. 

A leader. Dominant position in US. Buy on any day "that ends in 'y'". Always seems expensive if you look at the high 30s PE ratio. Chart looks stretched. Look for a pullback, perhaps when December seasonality subsides early in the new year. Membership rate increases every couple of years creates earnings power, as there are few good substitutes.

About as good as it gets on long-term buy and hold.

Very strong business in North America. Offshore business units not as strong. Inflation will attract new consumers. Execution of business very good. 40x P/E ratio very high. Would wait to buy on weakness. 

Up 44% this year, 4.5% today. Nobody does it better than them in retail. Last night they reported an amazing quarter: 7% increase in cardholders, member fee income up 8.2%, enjoying lower freight costs and will pay a special one-time dividend to shareholders. Plus, they're controlling shoplifting. One to own forever.

They report Thursday. He wants to hear what they say about the impact of inflation on consumer demand. This has had a good run this year. Don't trade it in and out. Doesn't have a problem with theft, like other retailers.

Both. Buy them 50/50. Costco is about their memberships, and TJX is the best off-price retailer around.

Leans towards AMZN, based on it having retail but also AWS. AI investments should help both AWS and retail customers. More compound potential because of different business streams.

COST has been well developed, but not sure how much more juice there is.

Terrific business. He's also been watching and waiting. Always trades at a high multiple, around 30x earnings. Unique business model with memberships, not a traditional retailer. Strong recently, because it's one of the few ways for consumers to save money. Stock weakness might occur if interest rates ease.

They have a net-leverage ratio (more cash than debt). It's one of the few retailers doing fine. They control theft well. They have so much cash, he thinks there could be a special dividend coming.

It enjoy economies of scale and strong price momentum.

Just delivered another solid quarter, traffic up 5.2%, memmbershio renewals also high.

Reported a strong quarter yesterday: little theft, beating same-store sales, overall sales, earnings and membership count. It rallied 2% today, up 23% this year.