Once again Costco is expanding sales at a significant clip.
Always remember it is best to own stocks at reasonable prices that are great companies. Buffett learned this lesson long ago at the urging of Charlie Munger.
Buffett used to buy "cigar butts" for investments. These were companies discounted in the market, but with a little upside. They may be cheap, but there wasn't a lot of upside ("one puff left on the cigar butt). Munger encouraged Buffett to focus on great companies that have a lot of upside.
Costco is one of those great companies that continues to run their business well and, therefore, has great upside. Maybe that is why Charlie Munger sits on their board!
Jim Sinegal, the founder, is still associated with the company, so he will continue to encourage the type of business that made it great and made it his legacy. As soon as the management gets too far from the founders (several generations of senior management) bad things usually start to happen. This is what happened with Walmart after Sam Walton was long gone.
I believe Costco still has legs. Run Forest! Run....!
