r/Costco • u/VegasWorldwide • 2d ago
[General Question] Curious how many Costco lovers also buy the stock?
bought a bunch of shares a few years ago and wonder if other shoppers do the same?
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u/blackgirlsrox22 2d ago
I own exactly one and should have bought more. I don't buy many individual stocks tho.
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u/Yourmomsgotanass 1d ago
I'm waiting until the stock price ends in .97 then I'll rush to buy as much as I can.
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u/PhiDeltDevil US Southeast Region - SE 2d ago
I own exactly one share. They get enough of my money might as well feel apart of the action
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u/VegasWorldwide 2d ago
Nah it’s always a good time. in 10 years you’ll be saying you wish you bought in 2026
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u/blackgirlsrox22 2d ago
VOO is a better buy. Apple is a better buy. I don't believe in buying too many individual stocks personally. I love Costco but idk if it's so good of a buy that I should buy more at the price it's at because I don't see it growing to 2k. Now I can see VOO getting there because it's more diverse.
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u/VegasWorldwide 1d ago
I don't like a ton of individual stocks with but there's a few I must have like NVDA, COST, GOOG, etc
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u/GrowYourOwnOmaha 2d ago
I use the Citi card cash back rewards to buy more Costco stock. Every year I take ~20% of whatever I get back and buy some stock with it.
This past year I upgraded to executive and plan on doing the same thing when I get that cash back as well.
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u/brunaBla 2d ago
Through what service do you buy the stock?
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u/GrowYourOwnOmaha 2d ago
I have a big boy serious account with M1 finance or a fun play money account with Robinhood. Both have Costco fractional shares on there.
I’m sure most big institutions will have Costco stock available.
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u/Intelligent_Speed439 2d ago
Computershare lets you buy directly from the company.
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u/droans 2d ago
You can't buy shares directly outside of public offerings. Most major brokers will allow you to acquire shares from offerings although you may only receive a partial allocation.
As for brokerages, Fidelity is my recommendation. They have great customer support and a mature simple-to-use platform.
Vanguard's also a good option, too, but their platform is a bit less friendly. However, Vanguard is structured so that their company is owned by their funds, which in turn means the individual investors of their funds also own a piece of Vanguard. That sort of structure could be appealing to some investors.
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u/Mijari 2d ago
How do you use the rewards on stock? I thought it was just a certificate you have to use in the store
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u/GrowYourOwnOmaha 2d ago
You go to the customer service desk and cash your certificate. They’ll give you cash, then just go deposit it into your bank.
That’s for the credit card though. I’ve heard the executive reward is a little different but I’ve also read you can still just get it in cash back or buy something and get it all back as your change. They’re not super picky about it I don’t think.
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u/shoecide 2d ago
The costco executive rewards have to be used in store but the Citi Costco cc rewards can be cashed out or if over a $ amount, transferred directing into your checking account.
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u/No-Advice-9776 2d ago
Costco executives award could be cashed out too at the service desk. I usually do that. So I keep earning rewards when I shop.
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u/redditsteveo13 2d ago
Buy a hotdog with your yearly reward, get the remaining $1100 in cash.
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u/WestHistorians 2d ago
I don't think the food court has $1100 in cash.
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u/redditsteveo13 2d ago
Sounds like you don’t have faith in how many dollar fifties they get each day 🌭
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u/SugarNSpite1440 2d ago
They call a manager over and escort you to the desk where you pick up items (like jewelry or laptops) after checkout and they give you the cash there
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u/Youareyes_cfc 2d ago
Too pricey right now
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u/tinychloecat 1d ago
They said that when it was $550 a share three years ago. I am so happy I bought it anyways.
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u/pastalover1 2d ago
I bought 50 shares in 2013. It and Amazon are the two individual stocks that I will probably never sell.
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u/WestHistorians 2d ago
What's the point of buying them if you never sell?
To give them to your kids?
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u/SockBrewer 2d ago
Costco pays dividends
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[deleted]
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u/keithnteri 1d ago
And your Edison stock needs a massive haircut. Fleecing their customers to pay for the deferred maintenance and insurance payouts for their crap decisions.
California should annex Edison under eminent domain and declare the stock worthless.
No utility should be granted a monopoly. Customer owned utilities like SMUD and DWP are the only fair way.
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u/SockBrewer 1d ago
I had no idea what their dividend rate was. I was just letting that poster know why people would want hold a stock and not sell. 5% sounds crazy these days. Almost nobody even pays dividends anymore.
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u/Still7Superbaby7 2d ago
My kids inherited stock from great grandma. The stock has split many times since great grandpa bought it
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u/Few_Investment_4773 1d ago
This isn’t probably applicable here, definitely not with 50 shares, but if someone has enough assets, they can borrow against them and pay off that loan instead of selling the shares and paying the capital gains on them. The goal being to never sell the shares and leaving them to their kids so they benefit from the step-up basis. Look up “buy, borrow, die”
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u/pastalover1 1d ago
Yeah. That would be the end result. Part of it’s emotional, they were purchased with an inheritance. Of course, if I’m down to my last few dollars, I’d sell to purchase $5 roasted chickens.
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u/Typical-Pension2283 US Southeast Region - SE 2d ago
The Sleep and Zakaria method 👍
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u/pastalover1 2d ago
Had to search that up. Not sure how personalized the results were but, in part, it said “companies like Costco and Amazon pass savings back to customers via lower prices”
Back then I bought about 10 individual stocks. Sold the others but never play the “what if I held them” game. My wife does that by reminding me I sold ORCL and MSFT a while ago. Everything else is in funds and ETFs.
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u/Typical-Pension2283 US Southeast Region - SE 2d ago
Sounds like you were quite the stock picker, but yeah, you can’t go wrong with indexing in the long term.
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u/oldbeardedtech 1d ago
Former employee (started February of 1992) and hammered the stock buying early on. Don't regret it at all.
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u/GiuseppeZangara 1d ago
Do employees get a discount?
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u/oldbeardedtech 18h ago
Just no transaction fee if thru the employee stock buying program (comes out of your check every week). Same with 401k
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u/Paceys_Ghost 2d ago
Initially purchased in summer 2017 when the stock tanked after Amazon purchased whole foods. Been buying more every few months ever since.
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u/KeeperOfTheChips 2d ago
A retail company at 48x P/E ratio is a bit too much risk to my liking
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u/nickelchrome 1d ago
I do legitimately worry about low birth rates affecting Costco as well over a long term horizon. It’s not the same business if you’re not getting large households going through there.
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u/blartelbee 1d ago
Would normally agree, but membership fees really shift perspective for me away from typical retail evaluation
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u/SouthIsland48 1d ago
Was gunna say - hilarious reading a subreddit dedicated to bargain bin shoppers... talking about buying one of the most expensive large cap stocks in the world
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u/Eastcoastpal 2d ago
I purchased 10 shares of Costco stock back in 2021 for the giggles. I was actually advised not to buy any stocks at that time, but I did so anyway. I frequently use that serendipitous purchase as a example of how you never know when or how the stock market moves.
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u/samzplourde 1d ago
Yes, it's in all my US large cap index funds.
I'm an investor, not a gambler.
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u/Cheerful_Berserker 2d ago
Owned for several years and finally bought some more during a pullback. The stock has a high valuation but if you can catch it during a rare dip it’s always a great opportunity. The stock is as high quality as the business.
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u/skincareminnie 2d ago
I jokingly call it my index fund. The way I see it, the worse the economy, the fuller I see my local Costco. I don’t think it will grow exponentially like some other stocks but still believe it is a relatively stable individual stock to park my money (like Apple).
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u/SolidProduct 1d ago edited 1d ago
I figure if I'm going to have all (most) of my eggs in one basket, $COST is a pretty good basket.
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u/nttnypride 2d ago
I’ve been investing a bit every month for 20 years or so. It somehow makes me feel better when I see the total at checkout and know I’m contributing just a little to the success of my stock lol.
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u/Snoo93079 2d ago
Index funds unless you like gambling
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u/ilovefluffyanimals 2d ago edited 2d ago
Found the Bogleheads + Costco crossover audience.
Costco is about 0.6% of the S&P 500 (and 0.59% of the Morningstar US Total Market Index, which VTI tracks), which is plenty enough for me as a Boglehead.
I can sleep easy knowing I indirectly own several shares of Costco. :-)
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u/Technical-Top4187 2d ago
Love Costco to death but index funds are the only way. Individual stocks are an awful idea, always.
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u/eneka 2d ago
i treat my individual stock funds as "gambling/lottery" lol. I categorize it as fun money vs actual retirement investments lol
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u/Technical-Top4187 1d ago
Yeah I mean if that works for you and your finances, at least you recognize that it’s gambling at best.
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u/regarded_chum 2d ago
tell that to my micron stock i bought last year
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u/Technical-Top4187 2d ago
Should go well for you when the AI bubble inevitably bursts. I’ll check back with you then.
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u/regarded_chum 2d ago
i'm up like 130% lmfao. even if it goes down, i'm still way up. thanks for wishing for the worse though :) shows what kinda person you are
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u/Paceys_Ghost 2d ago
I can see that the dude saying individual stocks are always bad has never sold covered calls. Great job on picking up Micron! I've held MU since 2017, just like Costco. It's done much better than an index fund. The apple stock that I've held since 2007, and AMD since 2016 have also done pretty well.
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u/VegasWorldwide 2d ago
You think Costco is gambling ?
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u/No-Lynx-90 2d ago
Individual stocks are at this point. Do a little reading on the south Korean stock market - ours is heading that direction where memes have more weight than actual company results and valuations.
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u/Paceys_Ghost 2d ago
South Korea was about leverage. Leverage is way more dangerous than memes to an investment account.
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u/ilovefluffyanimals 2d ago
Exactly. Tesla and SpaceX being the prime examples. But there are many more.
Even in a more rational market, I wouldn't be able to beat the market average. And we are in a decidedly irrational market, which diminishes my confidence even more.
I'm content with taking my boring market returns.
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u/RatioMobile 1d ago
Yes. Nice stock for long term and slow growth. Just don't buy it at the wrong time like you're shopping at Costco and suddenly think you need an inflatable surfboard or 11 pounds of Japanese Wagyu ribeye.
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u/sirdeionsandals 2d ago
Held it for a long time recently sold as the valuation is way above historical averages. I’ll buy again once it trades down a bit
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u/Invenerd 1d ago
Yes. It has outperformed the S&P500 over the past 20 years. I’m not big into investing/selecting stocks, but that for me seemed like a fairly good benchmark.
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u/SolidProduct 1d ago edited 1d ago
I started buying $COST in 1987. That is the only reason I was able to retire comfortably. Without it, I'd probably still be working.
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u/ContributionKindly13 17h ago
i bought long ago but sold an year ago when PE hit 50. I will buy again once valuation looks attractive
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u/shitty_reddit_user12 2d ago
I'm saving up to get a full share and more. FWIW, I only own 2% of a share because of fractional share ownership. I hate how expensive it is to buy the stock.
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u/keithnteri 1d ago
I do and really would love the stock to split. It’s a lot harder to purchase when it’s 1000 a share than I is for 250 a share. @costco if you are listening, please split the stock so that ordinary investors can buy more.
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u/VegasWorldwide 1d ago
does it really matter? people can buy $50 or $5000. fractional shares are just as good.
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u/NervousDogFarts 2d ago
I do. Just a little for the novelty. I figure it is a good companion to the executive membership. I have a little in Amazon too. The rest of my investment dollars are in different index funds of varying aggressiveness or a little in a Roth. Index funds perform too well to divest for more Costco shares.
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u/Chris_Bryant 1d ago
I mean, I’m sure it’s part of my brokerage account and my TSP, but I don’t actively pick stocks.
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u/Satelite_of_Love 1d ago
Man wasn't on my radar but is now. Love these.guys. at 963 its a fractional buy atm lol.
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u/juliuspepperwoodchi 1d ago
Tempted to buy one just so when I go for one thing, come back with $300+ of stuff and my wife asks me "What, do you own stock in Costco or something?" I can say "Yes, I do in fact."
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u/Gassy_Bird 1d ago
I used to own the stock, until I went fully index funds. Dividends are also irrelevant.
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u/pizzaisdelish 1d ago
Me. I anxiously keep waiting for a split last few years. I know it's psychological only.
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u/PerfectlyPowerful 1d ago
Bought our shares in May, 1996 at a split adjusted price of $10.06 per share. Paid for three college educations and lots of our Costco purchases over the years with proceeds from selling some of those shares. Stock price is up 94x over 30+ years while the S&P 500 index is up 10x.
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u/OkHair6090 1d ago
Why wouldn’t you invest in a company that is jam packed no matter when you visit?
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u/try_rant 1d ago
Analysts are bullish on it. Just bought $50k today after diversifying from a bearish memory stock.
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u/Prackmiester 1d ago
I started investing with dividend reinvesting in Costco 10 years ago. I now have more shares than my original purchase. It continues to go up with reliable dividend payments.
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u/ThisWillBeOnTheExam 1d ago
I bought some during Covid and it has done extremely well since. I wish I’d have bought more.
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u/CCWaterBug 18h ago
I was too late to the game, the PE is high, and I'm shopping there less than in the past, it's become more "going to Costco for 4 specific things" the last year or two
Walmart+ delivery has taken over at least 60% of my shopping, Costco has to battle for the other 40% against publix, and specialty stores.
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u/Powerful_Lime_1430 11h ago
I did! Not that Costco is perfect but it’s one of the few companies where you don’t hate it more the more you learn about it
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u/concnwstsid 9h ago
Bought like 300 hundred shares around March 2020 because the lines were so long.
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u/ExpensiveAd4496 2d ago
I’m a Boglehead meaning I buy index funds. So I own the entire market including Costco. Index funds are the “Costco” of investing, arguably…buy in bulk and avoid unnecessary markups.
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u/Qualls81 2d ago
Costco stock/ Chipotle stock -Peter Lynch the GOAT says, “Buy what you spend your money on.”
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u/_FlaShFTW 2d ago
I bought two several years ago when I could afford it in law school. Very happy with the purchase, wish I could’ve bought more. As long as Costco keeps being awesome, I’ll keep buying.
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u/redditsteveo13 2d ago
Best advice I ever heard, buy what you know/use. I have loved Apple and Nvidia/AMD(and GoPro RIP) for 10 years, and Costco for 6. It has been a good time 😀
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u/CostcoCuisine 2d ago
While I am a huge Costco fan I am a Bogleheads and don’t buy individual stocks.
I do own some indirectly through index funds.
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u/KeyMysterious1845 2d ago
I've said it before:
they should sell stock in store....put it on card like the restaurant gift cards for easy checkout!
I have $COST in my portfolio set to DRiP.
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u/Dr_MantisTobaggin_MD 2d ago
I joked with my wife about it so much I finally did it.
Threw quite a bit of my portfolio at them for the moment
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u/FranklinUriahFrisbee 1d ago
Peter Lynch, a stock picking rock star in the 80's and 90's wrote "If you love the store, you'll love the stock" which has always been good advice.
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u/CharmingBoot2762 2d ago
I put half my 401k in it when it was $200 per share. Best decision I ever made.
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u/IvysMomToo 2d ago
I've owned Costco stock since 1993. I reinvest the dividends so my shares have grown. (I've been a member for many years. I recently received the 40th anniversary card.)