COST

Costco Wholesale Corporation

$920 407.5B market cap December 24, 2024

Costco Wholesale Corporation COST BUFFETT / MUNGER / KLARMAN SUMMARY

1 SNAPSHOT

Price$920

Market Cap407.5B

2 BUSINESS

Exceptional T1 business at unexceptional price. 54x P/E leaves no margin of safety. Best retail model ever, but wait for significant correction below $545.

3 MOAT WIDE

Membership flywheel (fees = all profit, enabling lowest prices), 92.9% renewal rate creates extreme switching costs, $254B purchasing power for scale economies, "Costco quality" brand trust, employee culture (50% above retail avg wages, <10% turnover)

4 MANAGEMENT

CEO: Ron Vachris

35% regular dividends, 25% special dividends (when cash builds), 30% disciplined CapEx (20-25 new stores/year), 5% buybacks (minimal due to valuation). CEO pay modest at 206x median employee vs retail avg 500x+.

5 ECONOMICS

3.7% Op Margin

22% ROIC

22% ROE

53.3x P/E

6.3B FCF

Net Cash Debt/EBITDA

6 VALUATION

FCF Yield1.5%

DCF Range580 - 750

Overvalued

7 MUNGER INVERSION

Kill Event	Severity	P()	E[Loss]
Membership model disruption (Amazon matches value)	HIGH	-	-
Multiple compression from 54x to 25x (still premium)	MED	-	-

8 KLARMAN LENS

Downside Case

Membership model disruption (Amazon matches value)

Why Market Right

At 54x earnings, valuation implies 15%+ annual growth for a decade; The retail industry averages 12-15x because competition is fierce

Catalysts

Membership fee increase (2025, 70% probability), international expansion, special dividends; But Costco doesn't NEED catalysts - business compounds naturally; Only catalyst needed: lower entry price

9 VERDICT WAIT

A+ Quality Fortress - net cash position

Strong Buy$475

Buy$545

Fair Value$750

Strong Buy below 475, Accumulate below 545

10 MACRO RESILIENCE -11

Mild Headwinds Required MoS: 28%

Monetary

Geopolitical

Technology

Demographic

-3

Climate

Regulatory

Governance

-2

Market

-9

Key Exposures

Valuation Compression -9 54x P/E for 10% growth retail is unprecedented. Even compression to 30x implies 44% downside.
GLP-1 Consumption Impact -3 Bulk food model exposed to structural decline in caloric consumption as GLP-1 adoption spreads.
Inflation Tailwind +2 Value proposition strengthens when consumers seek to stretch budgets through bulk purchasing.

COST is exceptional quality at exceptional prices. The -11 total score is dominated by extreme valuation risk (-9). The business is outstanding but 54x P/E leaves no room for error and significant downside if multiples normalize. GLP-1 creates moderate headwind to food consumption thesis. Required MoS of 28% implies waiting for $545 or below. WAIT for meaningful pullback; do not chase quality at any price.

🧠 ULTRATHINK Deep Philosophical Analysis

COST - Ultrathink Analysis

The Real Question

We're not asking "is Costco a great business?" The 92.9% membership renewal rate and unique "sell at cost, profit from fees" model answer that. The real question is: At what valuation does even the best retail model become uninvestable, and is 54x earnings that threshold?

The market sees Costco as either inevitable compounder or retail exception. Neither frame addresses the real issue. The deeper question: When your entire operating profit equals your membership fees, and you trade at 54x earnings, are you buying a business or a concept?

Hidden Assumptions

Assumption 1: Membership renewal is permanent. 92.9% renewal is extraordinary—among the best in any business globally. But permanence requires no alternative emerging. Amazon already offers warehouse-club-style bulk purchasing with Prime membership. If Amazon optimizes for Costco's value-conscious customer, even 90% renewal becomes 85%, then 80%. The moat is deep today; its permanence is an assumption.

Assumption 2: The 54x multiple is justified by quality. Premium businesses deserve premium multiples—but the premium has limits. Costco's revenue grows 10%, earnings grow 12-14%. These are excellent but not tech-company growth rates. At 54x, the market assumes either acceleration (unlikely for $254B revenue) or permanent premium (historically rare). The assumption embeds perfection.

Assumption 3: Retail is different this time. Every great retailer eventually faced competition, margin pressure, or saturation. Walmart traded at 40x in 1999 and spent 15 years going nowhere. The assumption that Costco is exempt from retail's gravitational forces ignores that Costco IS retail, just retail executed brilliantly.

Assumption 4: The treasure hunt never ends. Costco's magic includes discovery—the rotational merchandise that makes every visit surprising. But treasure hunts require treasure. As Costco matures, does the merchandising edge dull? Does "30% different products each visit" become 20%, then 15%? The experience can fade even if operations don't.

The Contrarian View

For the bears to be right, we need to believe:

Multiple compression is inevitable — 54x normalizes to 30x (still premium for retail). Stock falls 44% even with perfect execution.
Revenue growth slows from 10% to 6-7% — The law of large numbers eventually applies. $254 billion can't grow 10% forever without becoming implausibly large.
Competition finds an angle — Amazon, Walmart, or a new entrant cracks the membership model. Not breaks it—just slightly erodes it.
Data center tailwind fades — Costco's new store economics benefit from data center construction workers. When AI infrastructure buildout normalizes, one tailwind diminishes.

The probability of meaningful multiple compression? Perhaps 40-50% over 5 years. Revenue growth slowing? 60% over 10 years. Competition finding traction? 25%. These compound.

Simplest Thesis

Costco created the best retail model ever invented—and the market is charging 54 years of earnings to own it.

Why This Opportunity Exists

The opportunity doesn't exist.

At $920, Costco is correctly priced as exceptional. This is not mispricing—it's accurate recognition of quality:

No forced selling — $407 billion market cap, highly liquid, no stressed sellers.
No complexity discount — The model is beautifully simple. Everyone understands it.
No institutional constraints — 68% institutional ownership. Every quality fund owns it.
No neglect — 38 analysts, constant media coverage, celebrity customers.

The market sees exactly what exists: the best retail model, executing flawlessly, growing steadily. The price reflects that clarity.

The opportunity exists only below $545, where 20% margin of safety creates room for multiple compression without permanent capital loss.

What Would Change My Mind

Stock drops 40%+ to $545 or below — At that level, multiple compression risk is priced in. Quality at reasonable price.
Growth accelerates to 15%+ — If membership growth, international expansion, or new categories drive faster earnings growth, the multiple becomes less demanding.
Membership fee increase proves painless — If a 2025 fee increase lifts profits with no renewal impact, pricing power is confirmed.
Market-wide correction creates opportunity — A 30%+ broad market decline would bring Costco into the zone.
Amazon concedes the battle — If Amazon explicitly exits warehouse-club competition, competitive risk diminishes.

None is present today. The correct action is admiration from afar.

The Soul of This Business

Strip away the financials, the membership stats, the warehouse counts. What is Costco at its core?

Costco is trust institutionalized. The fundamental promise: "We will never profit on the goods we sell you. Our entire profit comes from the fee you pay for the privilege of shopping here. Therefore, we will always get you the lowest price, because that's how we earn your renewal."

This radical transparency—telling customers exactly where profit comes from—creates a virtuous cycle of trust. The $4.8 billion in membership fees becomes permission to optimize entirely for customer value. No other retailer operates this way because most can't afford to.

The soul is the flywheel: Trust → Renewal → Volume → Buying Power → Lower Prices → More Trust. Each turn reinforces the next. Fifty years of turns have created something nearly impossible to replicate.

But here's the uncomfortable truth: souls don't set stock prices. Costco's soul is identical whether the stock is $300 or $1,000. What changes is the mathematics of compounding.

At $475, you buy the institutionalized trust flywheel at a price that leaves room for error. You're paying for excellence while accepting that excellence might temporarily stumble.

At $920, you're buying the same flywheel at a price that assumes the flywheel never slows, never faces meaningful competition, and deserves 54x earnings forever.

The flywheel will keep spinning. The treasure hunt will continue. Membership renewals will remain strong. The only question is price.

Costco is worth owning. The current price is not worth paying.

The soul is worth waiting for. The stock is not.

Executive Summary

Investment Thesis (3 Sentences)

Costco operates arguably the best retail business model ever created: a membership-based warehouse club where membership fees equal operating income, giving management permission to sell goods at cost. The 92.9% membership renewal rate represents one of the strongest customer loyalty metrics of any business globally, creating a flywheel that compounds over decades. However, at 54x trailing earnings, the current valuation leaves no margin of safety even for this exceptional business.

Key Metrics Dashboard

Metric	Value	Assessment
Current Price	$920	Near all-time highs
P/E (TTM)	54.2x	Historically elevated
ROE	30.3%	Exceptional (>15% threshold)
Net Debt/EBITDA	0.3x	Fortress balance sheet
Dividend Yield	0.5%	Low, but special dividends
5-Year Revenue CAGR	10.1%	Consistent growth
Membership Renewal	92.9%	Best-in-class
Megatrend Tier	T1 "Fortress"	+9 Score

DECISION

┌─────────────────────────────────────────────────────────────────┐
│                     INVESTMENT RECOMMENDATION                    │
├─────────────────────────────────────────────────────────────────┤
│ Company: Costco Wholesale       Ticker: COST                    │
│ Current Price: $920             Date: December 24, 2024         │
├─────────────────────────────────────────────────────────────────┤
│ VALUATION SUMMARY                                                │
│ ┌─────────────────────────┬─────────────┬─────────────────────┐ │
│ │ Method                  │ Value/Share │ vs Current Price    │ │
│ ├─────────────────────────┼─────────────┼─────────────────────┤ │
│ │ Graham Number           │ $335        │ -64% (N/A)          │ │
│ │ Net Current Asset Value │ N/A         │ Negative            │ │
│ │ Liquidation Value       │ $55         │ N/A                 │ │
│ │ DCF (Conservative)      │ $680        │ -26% Premium        │ │
│ │ Private Market Value    │ $750        │ -18% Premium        │ │
│ │ Owner Earnings (15x)    │ $390        │ -58% Premium        │ │
│ │ Owner Earnings (25x)    │ $650        │ -29% Premium        │ │
│ └─────────────────────────┴─────────────┴─────────────────────┘ │
│                                                                  │
│ INTRINSIC VALUE ESTIMATE: $680 (quality-adjusted DCF)           │
│ MARGIN OF SAFETY: -35% (NEGATIVE - stock is overvalued)         │
├─────────────────────────────────────────────────────────────────┤
│ RECOMMENDATION:  [ ] BUY  [ ] HOLD  [X] WAIT  [ ] SELL          │
├─────────────────────────────────────────────────────────────────┤
│ STRONG BUY PRICE:         $475 (30% below IV)                   │
│ ACCUMULATE PRICE:         $545 (20% below IV)                   │
│ FAIR VALUE:               $680                                   │
│ CURRENT STATUS:           35% PREMIUM to Fair Value             │
├─────────────────────────────────────────────────────────────────┤
│ POSITION SIZE: 0% until price correction                        │
│ CATALYST: None needed - quality will compound                    │
│ PRIMARY RISK: Valuation - paying 54x for 12-14% growth          │
│ SELL TRIGGER: N/A - not currently owned                          │
└─────────────────────────────────────────────────────────────────┘

Verdict: WAIT - Exceptional T1 business at an unexceptional price. Add to watchlist and accumulate on significant correction below $545.

Phase 0: Opportunity Identification (Klarman)

Why Does This Opportunity Exist?

It doesn't. This is NOT an opportunity at current prices.

Costco trades at a premium for good reason:

Highest-quality retail business model in existence
Recession-resilient (membership sticky, value proposition strengthens in downturns)
Consistent 10%+ revenue growth
30%+ ROE with fortress balance sheet
Beloved by institutional investors

No Mispricing Present:

38 analysts covering the stock
Heavy institutional ownership (68%)
No forced selling, complexity, or institutional constraints
The market correctly prices Costco as an exceptional business

Conclusion: At $920, the market is pricing in continued excellence. There is no margin of safety. This is a WAIT situation - the business quality is clear, but the price is wrong.

Phase 1: Risk Analysis (Inversion)

"How could this investment lose 50%+ permanently?"

Risk	Probability	Impact	Expected Loss
Membership model disruption (e.g., Amazon matches value)	10%	-60%	-6%
Multiple compression from 54x to 25x (still premium)	40%	-54%	-22%
E-commerce failure / Walmart+ competition	15%	-40%	-6%
Regulatory intervention (antitrust, labor)	5%	-30%	-1.5%
Management succession risk (post-Craig Jelinek era)	10%	-20%	-2%

Probability-Weighted Risk: -37.5% (primarily valuation-driven)

Bear Case (3 Sentences)

"Costco trades at 54x earnings, implying 15%+ annual growth for a decade. The retail industry averages 12-15x earnings because competition is fierce and moats erode. When growth inevitably slows to 8-10%, the multiple will compress to 25-30x, resulting in 40%+ downside even if fundamentals remain strong."

Inversion: What Would Make Me Sell Immediately?

Membership renewal drops below 85% - Would indicate value proposition erosion
Amazon Costco competitor launch - Direct assault on model
Gross margin expansion - Would mean raising prices (against culture)
Executive compensation explosion - Would indicate culture change
Acquisition spree - Would indicate organic growth exhaustion

Can I State the Bear Case Better Than Bears?

Yes: "At 54x earnings, Costco is priced for perfection in a sector that rarely rewards perfection long-term. The bulls assume infinite runway, but every retailer eventually faces margin pressure. Walmart was similarly 'untouchable' at 40x in 1999 before spending 15 years going nowhere. Costco's edge is real but the price already reflects it."

Phase 2: Financial Analysis

Graham's 7 Criteria Assessment

#	Criterion	Costco	Pass?
1	Adequate Size (>$100M sales)	$254B	✓
2	Strong Financial Condition (CR>2, LTD<WC)	CR=0.92, but net cash	✓
3	Earnings Stability (10yr positive)	Yes	✓
4	Dividend Record (20+ years)	20+ years	✓
5	EPS Growth (>33% over 10yr)	+180%	✓
6	Moderate P/E (<15x)	54x	✗
7	Moderate P/B (<1.5)	15.8x	✗

Graham Number:

Graham Number = √(22.5 × $17.08 × $65.89)
             = √(25,315)
             = $159

Current Price: $920 = 478% of Graham Number

Graham says: MASSIVELY OVERVALUED

Buffett Quality Criteria

Criterion	Costco	Pass?
Explain in one sentence	"Costco sells goods at cost; profit comes from $65/yr membership fees."	✓
ROE consistently >15%	30.3% (5-yr avg: 27%)	✓
Management skin in game	Yes (Jelinek owns $40M+)	✓
Identifiable moat	Yes (see Phase 3)	✓
Consistent FCF	Yes ($3-6B annually)	✓

Buffett Quality Score: 5/5 EXCEPTIONAL

Valuation Trinity

1. Liquidation Value (Floor)

Tangible Book Value: $65.89/share
Less: Goodwill/Intangibles: $1,023M = $2.31/share
Tangible Book: $63.58/share

Adjusted for retail liquidation (inventory at 70%, PP&E at 40%):
Liquidation Value ≈ $55/share

Conclusion: Liquidation value is meaningless for Costco - no one is closing this business.

2. Going Concern Value (DCF)

Conservative DCF Assumptions:

Owner Earnings (FY2024): $5.5B
= Net Income ($7.4B) + D&A ($2.1B) - CapEx ($4.7B) - WC increase ($0.5B) + Growth CapEx add-back ($2.0B)
= Maintenance FCF: $6.3B

Growth Assumptions:
- Years 1-5: 10% growth (current trajectory)
- Years 6-10: 7% growth (maturation)
- Terminal: 3% perpetual

Discount Rate: 9% (WACC for quality retailer)

DCF Output:

Scenario	Value/Share
Conservative (8% growth)	$580
Base (10% growth)	$680
Optimistic (12% growth)	$820

DCF Fair Value: $680/share

3. Private Market Value

Recent retail M&A multiples:

Whole Foods (2017): 1.3x revenue, 25x EBITDA
Albertsons (attempted): 0.3x revenue
Kroger (attempted): 0.4x revenue

Costco should command significant premium due to:

Membership model (recurring revenue)
Highest customer loyalty in retail
Minimal capex vs revenue

Estimated Private Market Value:

Revenue: $254B × 0.55x (premium multiple) = $140B
EBITDA: $13B × 18x (quality premium) = $234B

Average: $187B ÷ 443M shares = $422/share

Adding control premium (30%): $548/share
Adding strategic premium (40%): $750/share

Private Market Value: ~$750/share (a sophisticated buyer would pay less than current market price)

Margin of Safety Calculation

Method	Value	Current Price	Margin
Graham Number	$159	$920	-478%
DCF (Conservative)	$580	$920	-59%
DCF (Base)	$680	$920	-35%
Private Market	$750	$920	-23%
Owner Earnings (15x)	$390	$920	-136%
Owner Earnings (25x)	$650	$920	-42%

Weighted Average Fair Value: $680 Current Margin of Safety: NEGATIVE 35%

Phase 3: Moat Analysis

Moat Sources

Moat Type	Strength	Evidence
Switching Costs	VERY HIGH	92.9% renewal rate; membership becomes habit
Scale Advantages	VERY HIGH	$254B purchasing power; lowest COGS in retail
Network Effects	MODERATE	More members → more volume → lower prices → more members
Brand/Trust	VERY HIGH	"Costco quality" is synonymous with value
Culture	VERY HIGH	Employee wages 50% above retail avg; <10% turnover

The Costco Flywheel (Unique Business Model)

┌─────────────────────────────────────────────────────────────────┐
│                     THE COSTCO FLYWHEEL                          │
├─────────────────────────────────────────────────────────────────┤
│                                                                  │
│    Membership Fees ($4.8B)                                       │
│           │                                                       │
│           ▼                                                       │
│    Cover All Operating Profit → Permission to sell at COST      │
│           │                                                       │
│           ▼                                                       │
│    Lowest Prices in Retail → Customer loyalty                    │
│           │                                                       │
│           ▼                                                       │
│    92.9% Renewal Rate → Predictable revenue                      │
│           │                                                       │
│           ▼                                                       │
│    Growing Membership Base → More purchasing power               │
│           │                                                       │
│           ▼                                                       │
│    Even Lower Prices → Flywheel accelerates                      │
│                                                                   │
└─────────────────────────────────────────────────────────────────┘

Key Insight: Costco doesn't need to make money on merchandise. This is the ultimate competitive advantage - competitors MUST make money on goods to survive.

Moat Durability Assessment

Threat	Severity	Timeline	Mitigation
Amazon membership model	3/5	5-10 years	Physical experience irreplaceable
Walmart+ growth	2/5	3-5 years	Different customer base
E-commerce general	2/5	Ongoing	60%+ purchases are grocery/perishable
Regulatory (size)	1/5	Unknown	Popular with consumers
Labor cost increases	2/5	Ongoing	Already paying premium wages

Moat Trajectory: WIDENING

The moat gets stronger over time because:

Membership base compounds (network effect)
Purchasing power increases with scale
Real estate locations locked in
Culture is self-reinforcing

10-Year Moat Assessment: WIDER - no force can replicate the culture/model combination.

Phase 4: Management & Incentive Analysis

Leadership

Executive	Role	Tenure	Compensation (FY2024)
Ron Vachris	CEO (since Jan 2024)	42 years at Costco	$6.3M
Richard Galanti	CFO (retired 2024)	39 years	$3.8M (final)
Gary Millerchip	CFO (from Jan 2024)	New (ex-Kroger)	TBD

Compensation Analysis

Component	Amount	% of Total	Alignment
Base Salary	$900K	14%	Standard
Cash Bonus	$1.5M	24%	Tied to comp sales growth
Stock Awards	$3.5M	56%	3-year vesting
Other	$400K	6%	Perks

Assessment: Executive pay is modest for a $400B company. CEO makes 206x median employee ($30K) vs retail avg of 500x+. Strong alignment.

Capital Allocation (Last 5 Years)

Use of FCF	%	Assessment
Dividends (regular)	35%	Conservative payout
Special Dividends	25%	Excellent (when cash builds)
CapEx (new stores)	30%	Disciplined 20-25 stores/yr
Buybacks	5%	Minimal (stock too expensive)
Debt Reduction	5%	Already minimal debt

Munger's Question: "If I were management with these incentives, what would I do?" → I would do exactly what Costco management does: keep prices low, pay employees well, open stores conservatively, return excess cash via special dividends.

Insider Activity (Last 24 Months)

Action	# Transactions	Net Shares
Buys	2	+12,000
Sells	15	-180,000

Note: Selling is primarily 10b5-1 plans for diversification, not bearish signals.

Phase 5: Catalyst Analysis (Klarman)

Catalysts (or Lack Thereof)

Catalyst	Timeline	Probability	Impact
Membership fee increase	2025	70%	+2-3% revenue/profits
International expansion	Ongoing	90%	+5% revenue over 5 years
E-commerce growth	Ongoing	80%	Margin pressure, revenue growth
Special dividend	2025-2026	60%	$10-15/share

Key Insight: Costco doesn't need catalysts. The business model compounds naturally. The only "catalyst" an investor needs is a lower entry price.

No Catalyst Assessment

Given no immediate catalyst, require:

✓ Larger margin of safety (30%+) → NOT MET (negative MOS)
✓ Accept longer holding period → N/A until entry
✓ Smaller position size → 0% until correction

Phase 6: Megatrend Resilience

Megatrend	Score	Notes
China Tech Superiority	+1	Immune - domestic focused, minimal China sourcing risk
Europe Degrowth	+1	Immune - 3% Europe revenue, domestic focus
American Protectionism	+2	Benefits - "Buy American" retailer, domestic champion
AI/Automation	+1	Benefits - warehouse automation, inventory AI
Demographics/Aging	+2	Benefits - value proposition strengthens as population ages
Fiscal Crisis	+1	Immune - value retailer benefits in recession
Energy Transition	+1	Immune - no fossil exposure

Total Score: +9 | Tier: T1 "Fortress"

No megatrend vulnerability. Costco is one of the most resilient businesses to own through any macro scenario.

Phase 7: Macro Debt Cycle Assessment (Dalio)

Company Macro Resilience

Green Flags (Crisis-Resilient):

✓ Net cash position (~$3B net cash)
✓ Debt in own currency (USD)
✓ Counter-cyclical demand (value strengthens in recessions)
✓ Strong FCF regardless of credit conditions
✓ Pricing power during deflation/inflation
✓ No dependence on capital markets access

Red Flags: None

Macro Resilience Score: Green: 6 | Red: 0

Conclusion: Costco would outperform in any economic scenario. During 2008-2009, same-store sales grew while competitors struggled. During 2020 COVID, membership actually accelerated.

Phase 8: Psychology Check (Munger)

Am I Being Influenced By:

Bias	Check	Action
Social proof	Yes - everyone loves Costco	Discount enthusiasm; focus on price
Liking tendency	Yes - great company	Doesn't mean great investment at any price
Availability bias	Yes - recent returns impressive	Check 10-year valuation history
Authority misinfluence	Yes - Buffett/Munger admire it	Their entry points were much lower

Decision: Bias check reinforces WAIT decision. The business is genuinely excellent, but that doesn't overcome a 35% premium to fair value.

The Final Munger Test

Circle of Competence: Can I explain to a 12-year-old? → "Pay $65/year to shop at a store that sells everything cheaper because they don't need to make profit on the stuff - your membership fee is their profit."
Variant Perception: What do I believe that the market doesn't? → Market is correct about quality. No variant perception. This is consensus greatness.
Humility Check: One thing that kills the thesis if wrong? → If membership renewal drops 5+ points, the model breaks.
Inversion Final: If this stock was down 50% tomorrow, would I be excited or panicked? → EXCITED - at $460, this is a generational buy. The business doesn't change.

Investment Recommendation

Summary

Costco is a T1 Fortress business with arguably the best retail model ever created. The 92.9% membership renewal rate, 30%+ ROE, and culture of value delivery create a self-reinforcing flywheel that should compound for decades.

However, at $920:

P/E of 54x is historically elevated
No margin of safety exists
DCF fair value is ~$680
Paying 35% premium for quality

Price Targets

Level	Price	Action
Strong Buy	$475	30% MOS - Full position
Accumulate	$545	20% MOS - Start position
Fair Value	$680	Hold only
Current	$920	WAIT - No action
Trim	$820	If owned, consider reducing
Sell	$1,000+	If owned, take profits

Final Verdict

╔═══════════════════════════════════════════════════════════════════╗
║                         FINAL VERDICT                              ║
╠═══════════════════════════════════════════════════════════════════╣
║  RATING:     WAIT (Watchlist - Exceptional Business, Wrong Price) ║
║  QUALITY:    T1 Fortress - Best-in-class                          ║
║  VALUATION:  35% Premium to Fair Value                            ║
║  ACTION:     No purchase until below $545                         ║
║  MONITOR:    Quarterly for membership trends & price correction   ║
╚═══════════════════════════════════════════════════════════════════╝

"Rule #1: Don't lose money. Buying Costco at 54x P/E risks Rule #1."

Appendix: Sources

API Data Retrieved

API	Ticker	Data
AlphaVantage	COST	Company Overview, Financials (FY2020-2024)
EODHD	COST.US	Historical prices (5 years), Dividends

Web Sources

Source	Data
Costco Q1 FY2025 Earnings	Membership metrics, guidance
Costco Investor Relations	Warehouse count, segment data
SEC EDGAR	Referenced for 10-K structure

Data Files

/research/analyses/COST/data/company-overview.md
/research/analyses/COST/data/financial-statements.md
/research/analyses/COST/data/historical-prices.md
/research/analyses/COST/data/SOURCE_CHECKLIST.md

Analysis completed: December 24, 2024 Framework: Graham-Buffett-Munger-Klarman-Dalio Integration