Costco, slow but sure? Message Board

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Non-Tech : Costco, slow but sure?

COST 914.24

-0.1%

Nov 11 3:59 PM EST

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To: Paul K who wrote (673)	8/19/1998 8:58:00 PM
From: Mel Fox	Read Replies (1) of 1147

Paul, Jim, others: For what it's worth ... the Motley Fool is doing a feature of sorts regarding "Return on Equity" (ROE) and COST is their choice for the article 8/20 ... follows is an excerpt from the MF page on Heroes, Goats, etc., for today: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ".... How else can you get to a high ROE without using ridiculous leverage? By the math presented above, a company can also generate a high ROA and ROE with a high asset turnover and not-so-great margins, right? Definitely. With a small stake in warehouse and membership benefits club Costco (Nasdaq:COST - news) , where Vice-Chairman Munger also sits on the board of directors, Berkshire's decision makers prove that they're not fixed on investing in companies where high margins decide ROE and ROA. We'll take a look at Costco and other high ROA companies tomorrow." Mel

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