Costco is an excellent example of one of the best run companies in the country. While I wouldn't advocate buying it at its current price, it is an example of a very high quality company that is run by world class managers.
The reason that I wouldn't buy it now is that it is very expensive! Its P/E is 56. P/E is a relative measure. P/E is the stock market price relative to each dollar earned by the company. A normal P/E range for a retailer is from 10 to 20. Costco is in the stratosphere. Costco is going to have to grow at such a high rate to validate that 56 P/E. Therefore, I wouldn't recommend buying it at the current very high price.
Look at the attachment for a few salient metrics concerning Costco. It is instructive to give you an idea what the "fundamentals" look like for the type of companies successful investors are looking for. Looking at any company without looking at its fundamentals is akin to flying in the dark. Most market participants fly in the dark. For that reason, most market participants end up paying too much and end up losing money. Don't let this be you!
Be smart, be well-read, be aware and be successful
