Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Yamakita who wrote (2749)	9/15/1998 6:28:00 AM
From: Bill Wexler	Read Replies (5) \| Respond to of 4634

I'm selling off some of my big-cap tech (all my CPQ and some INTC)...not because I think they'll suffer severe declines - in fact I believe they will both continue growing, but there won't be a lot of headroom in the next 5 years or so, i.e. I don't think I'm going to get another triple out of INTC anytime soon (I've been holding it since it was about 2 a share). Costco however is very interesting in many respects: 1) It is a large cap, but still in its high-growth phase. 2) It is building a mountain of cash. 3) It is very, very well-managed. 4) It is a near recession-proof business. 5) Amazing returns on invested capital and ROE. 6) I'm a loyal customer and nearly everyone I know is shopping at Costco. 7) It's easy to understand and easy to keep an eye on. Costco is one of those rare companies that come along every so often which you can buy with a great deal of confidence in good times and bad. I've been dipping my toe in and out of the water during the recent market upheaval. The price of Costco is just too tasty at these levels and I didn't want to risk waiting out another big market dip. I will also accumulate CCI and AXP - both of which are nearly being given away. I was scared out of buying last week. Now I'm beginning to regret that decision. Print this post out and clip it to your bulletin board; then refer back to it in a few years. In time, Costco will at least quadruple from its current level.