Core Viewpoint - The technology sector is often seen as the primary avenue for outsized returns, but other sectors, such as retail, can also yield significant investment opportunities [1] Company Overview - Costco is a leading retail company known for offering high-quality products at low prices through its warehouse clubs, requiring an annual membership fee for shopping [4] - The company's business model has remained largely unchanged, but it has adapted by expanding its target audience beyond just small business customers, increasing revenue potential [5] Product Strategy - Costco's private label, Kirkland, introduced in 1995, accounts for about 25% of merchandise sales, and on its own, would rank as one of the largest consumer goods companies globally [6] International Expansion - Currently, 733 out of 905 Costco warehouses are in the U.S. and Canada, but the company aims to increase its international presence, targeting that half of new warehouses opened each year will be in foreign markets [7] E-commerce Growth - Costco's online sales are growing at a faster rate than its overall business, with a reported e-commerce same-store sales increase of 11.5% in June [8] Financial Performance - In the fiscal 2025 third quarter, Costco reported net sales of $62 billion, making it the third-largest retailer worldwide [9] - The company is expected to see revenue and earnings per share grow at compound annual rates of 7.7% and 11.2%, respectively, from fiscal 2024 to fiscal 2027, indicating consistent financial performance [11] Valuation Concerns - Despite Costco's strong business fundamentals, there are concerns regarding its current valuation, with a price-to-earnings ratio of 54.2, suggesting that investors may want to wait for a more favorable entry point [12][13]