Stocks

Costco Can Make You Millionaire

By Hemaja Burud

Do you intend to increase your stock holdings past the $1 million threshold?

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For sure, you need some growth stocks, but the predictability of value stocks has a lot to recommend it.

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Smaller companies have more explosive potential, whereas with large-cap stocks you typically know exactly what you're getting.

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Costco Wholesale, a retailer with warehouse clubs, is one of the large-cap value stocks in this regard (NASDAQ: COST);

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a protracted record of advancement and success When you consider it, it's actually quite impressive.

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Prices at Costco are typically less expensive than those of its rivals. Even more impressive is how consistently the business has grown.

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The company's annual top line has increased from less than $60 billion to more than $200 billion since the late 1990s.

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Currently, Costco runs 838 membership-only stores, 578 of which are situated in the United States, as was already mentioned.

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But the truth is that for years, Costco's growth in new stores has coincided with Walmart's and Target's footprint expansion.

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The United States' 7.6% increase in same-store sales last month was in line with, if not slightly below, its long-term average.

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However, it has built a number of successful shopping warehouses in comparable geographic markets at the same time as its top rivals built a number of thousand stores.

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Look for the same kind of robust same-store sales growth and double-digit revenue growth assuming it continues to adhere to its successful, time-tested formula.

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But because of its membership-based business model, Costco is one that is experiencing rapid growth and may continue to do so for some time to come.

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Yes, long-term ownership of Costco stock can give rise to millionaire status. In other words, Costco's biggest and best growth advantage is its current (relatively) small size.