Could Costco Help You Become a Millionaire?
Costco (NASDAQ: COST) is a very well run company with a long history of success. And, if the fiscal second quarter of 2025 is any indication, the business continues to perform quite well. But just buying a good company isn't enough to ensure you get to millionaire status. You need the help of a good valuation, too. Here's why you need to be leery of buying Costco right now.Costco is a club store. This is very different from a traditional retailer, where the store puts out products and, more or less, just hopes people show up to buy them. Costco's customers pay an annual membership fee for the privilege of shopping at its stores. Why would anyone want to do that? The answer is that Costco uses those membership fees to help it keep its own costs down. This is a very big deal.Image source: Getty Images.Continue reading
Costco (NASDAQ: COST) is a very well run company with a long history of success. And, if the fiscal second quarter of 2025 is any indication, the business continues to perform quite well. But just buying a good company isn't enough to ensure you get to millionaire status. You need the help of a good valuation, too. Here's why you need to be leery of buying Costco right now.
Costco is a club store. This is very different from a traditional retailer, where the store puts out products and, more or less, just hopes people show up to buy them. Costco's customers pay an annual membership fee for the privilege of shopping at its stores. Why would anyone want to do that? The answer is that Costco uses those membership fees to help it keep its own costs down. This is a very big deal.
Image source: Getty Images.
