Wednesday, June 28, 2017

Purchased Costco! (COST)

I don't have much to say in this post other than to announce that I recently purchased a small (very small) amount of Costco.  To be specific, right at about $1000 worth.  I think Costco is a great company, and business in general, and EVERY time I go to Costco, no matter what particular state I am in (I recently visited Costcos in Arizona, Washington, and North Carolina, while traveling) and they are always PACKED with customers.  I couldn't sit on the sidelines anymore.

I was also excited to see the recent drop in share price thanks to the Amazon-Whole Foods bid, and so I picked up some shares of Costco believing the drop to be significantly overblown.

Finally, I believe in Charlie Munger to identify great businesses and I know Mr. Munger is a big believer in Costco as well.  I imagine Costco will do well for quite awhile, but unfortunately all of my available capital is still going towards paying down debt and real estate (minus this $1K), so this was all I could contribute.

My other idea was to short Tesla.  I cannot justify Tesla's share price in my head, at all.  It was either short Tesla or buy Costco.  From the date of my Costco purchase, Tesla shares have dropped around 20pts and Costco hasn't really moved. Blah.  Time will tell.

Well I suppose that's it. What are your thoughts on Costco?  Or on Tesla?  Thanks!

Passive Income Dude

1 comment:

  1. I meant to add that I know my 'Portfolio' tab is slightly out of date. I plan to update that during the first week of July! Thanks,

    ReplyDelete