I've followed COST for almost 20 years. There is so much I just love about this company. The CFO and the CEO's are a big part of that.
Their CFO, Richard Galanti, is retiring. I'm sure he established a culture within the company that will bode well for the company's future.
Looking at their fundamental numbers since 2000 you can easily see a quality company. Some of those factors are:
- Steadily increasing revenues
- Consistent gross margins
- Solid operating earnings that are slowly improving
- Reasonable LT debt levels
- No bullshit guidance numbers
- Great special dividends
- Well paid employees aligned with the company
- Happy customers
One of the important things I always look for in a company is simple financial statements. Costco is much like Apple. Their numbers are clear, simple and direct. Many companies hide behind a barrage of minute statistics that expand their financial reporting by 200 to 500%. Not Costco! "If you can't dazzle someone with brilliance, baffle them with bullshit."
From an investor's view Galanti will be sorely missed, but I'm sure he's done a great job of setting the tone for the next generation of Costco leadership.
