Wholesale, direct, and the cost of changing your mind
It traded at 35.52, -0.84% today. Moving from wholesale to direct raises margin and burns the shelf space it took decades to earn.
Free 4 min read
NKELULU
Stock
COST
COST
Delayed
Notes mentioning COST
7A toll road with a regulatory problem is still a toll road
The shares traded at 368.86, -0.74% today. The interchange debate is real, recurring, and has not yet changed the shape of the business.
Free 4 min read
VMSFT
Membership economics are the most underrated moat in retail
The stock traded at 910.51, -0.32% on the session. The interesting question about a membership retailer is never the margin on what they sell.
Free 3 min read
COSTWMT
What a ten-year holder actually underwrites
The two numbers I would underwrite for a decade, and why the multiple is third.
Paid 2 min read
The next membership fee increase is already in the price
What the fee increase adds to earnings, against what the valuation already assumes.
Paid 2 min read
The cheapest thing in the warehouse is the reason people come
A warehouse club makes little on its fuel and its famous cheap food. It does not need to. Those are why the trip happens.
Free 2 min read
A steady grower priced like a fast one
This is one of the most reliable businesses in retail. The shares are priced as if reliable meant fast, and those are different things.
Free 2 min read