Here's Why I Added Costco to My Portfolio in 2025

Costco Wholesale (NASDAQ: COST) has been a dominant player in the retail space for decades. For its shareholders, the results have been even more impressive. Over the past five years, Costco's stock performance has outpaced the S&P 500 by nearly 150 percentage points. Looking back 10 years, the stock has more than tripled the market's return.As is the case with most stocks that post market-beating returns, Costco stock trades for a premium. At this writing, shares trade for 62 times trailing earnings, only slightly below the stock's 10-year high of 63. Until recently, this nosebleed valuation has kept me away from buying shares.Here's why I changed my mind and added Costco to my portfolio.Continue reading

Mar 4, 2025 - 10:51
 0
Here's Why I Added Costco to My Portfolio in 2025

Costco Wholesale (NASDAQ: COST) has been a dominant player in the retail space for decades. For its shareholders, the results have been even more impressive. Over the past five years, Costco's stock performance has outpaced the S&P 500 by nearly 150 percentage points. Looking back 10 years, the stock has more than tripled the market's return.

As is the case with most stocks that post market-beating returns, Costco stock trades for a premium. At this writing, shares trade for 62 times trailing earnings, only slightly below the stock's 10-year high of 63. Until recently, this nosebleed valuation has kept me away from buying shares.

Here's why I changed my mind and added Costco to my portfolio.

Continue reading