Is Costco Stock Overvalued? 2 Things Investors Should Know Before They Buy.
Costco Wholesale (NASDAQ: COST) is one of the most solid retailers in existence. Its product selection and low prices have helped it build a huge following, and renewal rates on its memberships have consistently stayed above 90%. Such growth has drawn the longtime support of investor Charlie Munger, who has sat on Costco's board since 1997.
But it has also become a symbol of a successful company that is arguably not a compelling investment. Hence, investors may want to consider the following factors before deciding to buy shares in the retailer.
At first glance, criticizing Costco stock might seem counterintuitive. It began as a warehouse retailer on the West Coast in 1983. Now, 40 years of growth have taken it to 46 U.S. states and 14 countries across four continents.
Source Fool.com
