Costco is a strong, mature company with rapid growth, but its 40x P/E makes it unattractive for new buying despite holding existing positions.

Twenty years ago , Costco was much more comprehensive than it is today.

We've seen it with Costco. We've seen it with all the other companies, and it looks like it's going to continue.

That's how I feel, it's like buying Costco in the 90s or buying Walmart in the 80s.

I looked at a chart for Costco. Costco's stock has increased 20 times in the last 20 years. The past—sorry, that's an understatement—has increased 27.5 times over the last 20 years , compared to the S& P 500's 7.5 times, right?

The first thing that comes to mind is that Costco is a different model, right? But I went, oh, Costco's stock is currently trading at 40 times its price-to-earnings ratio, right? That's what I'm thinking.

How do you think about this long-term accumulation or perhaps the long-term valuation target when Costco's price is at 40x, which is the upper limit, right? As for Costco, I see it as a great company.

Honestly, I wouldn't sell its shares, but I wouldn't buy them either. It's like a mature tree, as I would describe it. It's still growing, but it's very mature in my opinion. It's a strong tree, but it's still growing at a rapid pace.

if we look at stores like Aldi, Walmart, affordable grocery stores, and even Costco, we will find that they have not had any problem growing within the United States.

it reminds me that they have a lot of things they're doing that remind me of Costco and Walmart. Some people might say that Costco sells sausages and chicken at a loss to attract customers.

But in the past, they had this idea of ​​not selling any products at a loss to attract customers, meaning they wouldn't sell any product at a lower price to attract customers, because that would force them to raise the prices of other products.

And that's something they're very careful about.

That's why, in my opinion, Costco hasn't carried fruits and vegetables yet. They're working on it. They have to retrofit all their distribution centers for this purpose. Another advantage is that with the retrofitting of the distribution centers, they'll need a separate cold storage room for each center.

They're also thinking about establishing suppliers not for $3,700, but for $7,000 , because that's where their business will grow . So it's not as if they're not working on what they'll offer in two or three years; it's as if they're working on what they're doing today."