Costco Wholesale Corp News and Headlines - COST

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A look at the value investor's portfolio at the end of last year

Chinese investor Li Lu (Trades, Portfolio) and his hedge fund Himalaya Capital often fly under American investors' radars. This is understandable as, until recently, Li didn't invest in the United States. His fund focused only on opportunities listed in China and Hong Kong. As these holdings are not required to be disclosed to U.S. regulatory authorities, it wasn't easy for Americans to see what he was buying.

Himalaya Capital Investors has produced an annual return of more than 20% since its founding in 1998. It's also the only hedge fund that we know of that can count

660 Views    Rupert Hargreaves    2021-02-17 15:34
Discussion of markets and holdings

January 22, 2021

Dear Sequoia Shareholders and Clients:

Sequoia Fund's results for the quarter and year ended December 31, 2020 appear below with results of the

S&P 500 Index for the same periods:

166 Views    Sydnee Gatewood    2021-01-26 23:22
A look back at the early history of this accomplished investor

Today, Charlie Munger (Trades, Portfolio) is well known in the investment community. He is Warren Buffett (Trades, Portfolio)'s right-hand man and the chairman of the Daily Journal (DJCO) corporation, as well as a board member of Costco (COST) and vice-chairman of Berkshire Hathaway (BRK.A) (BRK.B). He's also an accomplished investor in his own right.

We know a lot about the investments and businesses Munger owns and manages today, but his early companies are less well covered.

Munger the entrepreneur

Reading through Janet Lowe's book, "Damn Right, Behind the Scenes with Berkshire Hathaway billionaire

304 Views    Rupert Hargreaves    2021-01-26 17:27
These companies run highly predictable businesses

The GuruFocus business predictability rating ranks companies on a five-star scale, defining the more predictable companies as enterprises whose revenue per share and Ebitda per share are growing steadily and who have produced a strong long-term performance of their stock prices.

Thus, an investment strategy based on a "buy and hold" approach could be more successful if applied to stocks with a high GuruFocus business predictability rating. Value investors may be interested in the following three companies, as they have high business predictability ratings from GuruFocus.

Accenture PLC

The first company that makes the cut is Accenture PLC (ACN),

1403 Views    Alberto Abaterusso    2021-01-24 20:33
The retail giant may be running out of profitable opportunities

After successfully converging online retail with traditional brick-and-mortar retail, Walmart Inc. (WMT) seems to lack a strategy to sustain growth, as evidenced by two red flags that rose last week.

The first red flag is the company's decision to partner with an outside firm to offer next-generation digital financial products to its customers.

Apparently, this move is outside the retail giant's "core" business and sounds similar to Sears' decision to set Dean Witter retail brokers to its stores back in its old glory days.

Quo Vadis Capital President John Zolidis, a long-term Walmart follower, doesn't think that selling digital financial

141 Views    Panos Mourdoukoutas    2021-01-20 21:46
Walmart makes the list

According to the GuruFocus All-in-One Screener, a Premium feature, the following guru-owned retailers have outperformed the S&P 500 Index over the past 12 months through Jan. 5.

Walmart

Walmart Inc. (WMT) has a market cap of $468 billion. It has outperformed the S&P 500 by 8.02% over the past year.

As of Tuesday, the share price was 41.32% above the 52-week low and 6.19% below the 52-week high.

The company, which sells a variety of general merchandise and grocery items, has a GuruFocus profitability rating of 7 out of 10. The return on equity of 26.59% and return

145 Views    Tiziano Frateschi    2021-01-05 16:56
Our portfolio achieved its fourth double-digit total return in the past 5 years

Without a doubt, 2020 will be a year few will ever forget. A global pandemic upended normal life for so many people. Business were forced to close, schools turned to virtual learning and wearing a mask became a part of everyday life.

Early in the year, stocks went through a massive selloff as it appeared that the world was headed for at least a significant recession, if not depression. Timely stimulus from central banks and governments helped to prevent this, though millions remain out of work thanks to Covid-19.

The S&P 500 Index had a total return of

533 Views    Nathan Parsh    2021-01-03 21:38
A look back at some of the wisdom from the Nomad Investment Partnership Letters

Identifying themes and qualities that have helped companies succeed in the past can be an excellent guide for identifying future winners. There's no one set template investors can use to identify potential winners, but by seeking out businesses with similar traits, we can increase our chances of finding a good company to own.

Some of the greatest investments of the past 100 years have exhibited similar qualities. This was something Nick Sleep highlighted in his 2011 annual letter to partners of the Nomad Investment Partnership.

Nomad returned over 18% per annum net of fees between 2001 and 2013. By all

1028 Views    Rupert Hargreaves    2020-12-23 16:04
This retailer used a new strategy and its omnichannel capabilities to rapidly increase same-store sales

Investors looking for quality retail stocks selling for bargain prices don't have an abundance of choices.

One possible opportunity, in my opinion, is Big Lots Inc (BIG). The discount retailer, which owns a chain of 1,411 stores as of the end of its fiscal third quarter (which ended on Oct. 31), describes itself as follows in its 10-K for 2019:

"We manage our business on the basis of one segment: discount retailing. We evaluate and report overall sales and merchandise performance based on the following key merchandising categories: Furniture, Seasonal, Soft Home, Food, Consumables, Hard Home, and Electronics, Toys,

324 Views    Robert Abbott    2020-12-14 16:19
Second half of guru's Q&A session

In the second half of the Q&A session after his lecture at the Fall 2020 Value Investing Course at Peking University's Guanghua School of Management, Mohnish Pabrai answered more questions on his "Spawning" framework. This article focuses on the questions and answers regarding his experiences and lessons from mistakes.

Question 6: Is it possible for non-founder-led companies to become "Spawners?" And how do you avoid the "hammer-and-nail syndrome?"

Most "Spawners" are indeed founder-led. The founder has the DNA. The founder is typically young or relatively young and still running the company with the

1453 Views    Grahamites    2020-12-09 16:53
First section of the guru's Q&A session

After his lecture at the Fall 2020 Value Investing Course at Peking University's Guanghua School of Management, Mohnish Pabrai took questions from the students and sit-in audience members. The topics were very interesting to both the students and the professionals who sat in for the lecture. Below are some of the most fascinating questions and answers that I want to highlight.

Question 1: You mentioned that by looking at the history, one can find clues about whether a company has the DNA of spawning. According to your experiences, how long on average it takes to discover that

1957 Views    Grahamites    2020-12-07 16:40
The retailer keeps customers and employees happy

Costco Wholesale Corp. (COST) is a great company and a great investment.

It's a great company because it ranks highly on several high-profile company lists, like the American Customer Satisfaction list. Costco occupied the number one position back in 2018 in online customer satisfaction, ahead of Amazon (AMZN).

That's why Costco has a strong following among consumers, who pay membership fees for the privilege to shop at its stores.

Meanwhile, Indeed.com places Costco on the top of the list of best places to work, making it easy for the wholesale retailer to attract a qualified labor force.

Companies that keep

195 Views    Panos Mourdoukoutas    2020-11-22 21:07
They are cheaper than the S&P 500's historical mean

Investors who are seeking for value opportunities may be interested in the following stocks, as their price-sales ratios are lower than the S&P 500's historical mean, which is 1.57 as of the writing of this article.

Furthermore, sell-side analysts on Wall Street predict these stocks will increase their sales significantly this year and in 2021.

UnitedHealth Group Inc

The first company investors could be interested in is UnitedHealth Group Inc (UNH), a Minnetonka, Minnesota-based diversified healthcare company.

As of Oct. 23, UnitedHealth Group has a price-sales ratio of 1.27, which results from a share price of $330.60 and revenue

125 Views    Alberto Abaterusso    2020-10-25 12:43
Why these two billionaires like the business and its current valuation

There's one stock that we know both Charlie Munger (Trades, Portfolio) and Warren Buffett (Trades, Portfolio) love. Apart from Berkshire Hathaway (BRK.A) (BRK.B) and Wells Fargo (WFC), there's one business they have both repeatedly praised for its growth and unique operating model: Costco Wholesale Corp. (COST).

The favorite business

Buffett originally purchased 24 million shares in Costco for Berkshire's portfolio during the second quarter of 2000 after the stock fell 37% following the company's announcement of worse-than-expected earnings. Although the holding company has since reduced its position in the retailer, it still holds 4.33

324 Views    Rupert Hargreaves    2020-10-23 14:32
Walmart tops the list

According to the GuruFocus All-In-One Screener, a Premium feature, the following defensive stocks were trading with low price-sales ratios as of Sept. 28.

Walmart

Shares of Walmart Inc. (WMT) were trading around $136.70 with a price-sales ratio of 0.72 and a price-earnings ratio of 21.80.

The U.S.-based retailer has a $387.37 billion market cap. The share price has risen at an annualized rate of 11.15% over the past decade.

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The discounted cash flow calculator gives the stock a fair value of $67.10, suggesting it is overpriced by 103%.

The company's largest guru shareholder

93 Views    Tiziano Frateschi    2020-09-28 18:18
Same-store sales surged 11.4% in the reported quarter

Costco Wholesale Corp. (COST) released its fiscal fourth-quarter 2020 results after the closing bell on Sept. 24. The company surpassed earnings and revenue projections.

A rundown of the quarter

The warehouse operator posted net income of $1.39 billion, or $3.13 per share, up from income of $1.1 billion, or $2.47 per share, for the year-ago quarter. Analysts had predicted earnings per share of $2.85.

Revenue (including net sales but excluding membership fees) of $52.28 billion was up 12.5% on a year-over-year basis and was also ahead of analysts' expectations of $52.1 billion.

Comparable store sales were up 11.4% in the

66 Views    Mayank Marwah    2020-09-25 17:05
The warehouse retailer reported a stellar quarter with the best comps on record

After the closing bell on Sept. 24, Costco Wholesale Corp. (COST) announced fourth quarter and full year operating results for fiscal 2020, which ended on Aug. 30 for the company.

For the fourth quarter, adjusted diluted earnings per share came in at $3.13 compared to $2.47 in the prior-year quarter. Revenue was $53.3 billion, higher than the previous year's $47.4 billion. Analysts surveyed by Yahoo Finance had expected earnings of $2.82 per share on revenue of $51.99 billion.

The full year brought in diluted earnings per share of $9.02 compared to $8.26 in fiscal 2019, while revenue was $166.7 billion

417 Views    Margaret Moran    2020-09-24 22:21
4 more categories of exceptional investments

After Mohnish Pabrai (Trades, Portfolio) found an old and forgotten stock certificate of an Indian company, he discovered that in the 21 years since he invested in it, it had gone up 60 times. This prompted him to identify the characteristics that define truly exceptional investments that have the potential to grow to such an extent.

In the first part of this short series, we looked at the first category - businesses with strong tailwinds. These are the types of companies beloved by Warren Buffett (Trades Mohnish Pabrai

303 Views    Stepan Lavrouk    2020-09-23 20:23
Some thoughts on how to analyze businesses for a novice investor

I recently joined Michael Roberson of the "Strategy Chain" podcast for a discussion about the pros and cons of traditional value (cigar butt) investing versus a focus on higher-quality businesses, my thoughts on active versus passive, and other investment topics. In our conversation, Michael also asked me to walk through my research process. In particular, he wanted to know how I thought about idea generation, along with how I analyze a business once I've found a company to focus on.

First, my idea generation process tends to be a bit sporadic. I do not use stock screens, largely because I

1161 Views    The Science of Hitting    2020-09-19 18:04
According to GuruFocus' new valuation tool, these stocks could represent value opportunities

GuruFocus has recently developed the GuruFocus Fair Value Line, a unique method of estimating the intrinsic value of a stock.

Building off of the popular Peter Lynch chart, which compares a stock's current price to how much its earnings per share would be worth if it traded at a price-earnings ratio of 15, the GF Value Line seeks to take more than price alone into account when attempting to determine value. This new metric considers the following three categories of information:

  1. Historical price-earnings, price-book, price-sales and price-to-free-cash-flow ratios.
  2. A GuruFocus adjustment factor based on the company's past returns
3699 Views    Margaret Moran    2020-09-15 21:56

Headlines Total 854
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Through December 31, 2020

Sequoia Fund

S&P 500 Index*

Fourth Quarter

14.68%

12.15%

1 Year

23.33%

18.40%

3 Years (Annualized)

15.76%

14.18%

5 Years (Annualized)

11.63%

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