Brad Ferris

Take Stock in Costco

If you breakdown their revenues across global operations what becomes very evident is that they are dependent on North American operations to a significant degree simply because that is where the bulk of their profits come from. If a company receives 80% of revenues from two markets and 20% from the rest that company is very exposed to risk in the affected markets.

Costso is a great company, but as I explained at the beginning of this article I wrote an analysis based on a question by a fellow investor on whether Costco competes on price. If or when I view Costco as an attractive investment or something to compliment my investment portfolio I'll consider it then. As of now I'm content to have exposure to US retail via WMT.