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Author: StevnFool Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 214645  
Subject: Re: Retail notes Date: 1/16/2012 1:09 PM
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Michael,

Great writeup on Costco. An a potential investment, my two comments would be:

* At a P/E of over 24, I think the excellent company performance is fully built into the price so an investor at the current price can probably only expect an ordinary return at best from a great performing company. Now if I could buy it at $30 per share instead of $80 ....

* As you point out the success of the company was very heavily dependent on one man who has just retired. To even be sure of an ordinary return, his successor needs to measure up to the past performance which is by no means a certainty.

StevnFool
Not buying COST at the current price.
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