Costco's volume discount model has been a life preserver for families during inflation, providing a key driver of growth for the company amidst elevated prices.
The stock's current P/E ratio of 55 exceeds the 40 threshold warned by Charlie Munger, indicating potential valuation issues amidst future inflation challenges.
While Costco experienced a 35% stock increase in 2024, analysts express concerns over future performance given potential headwinds from inflation and membership cancellations.
Rivals like Sam's Club are strategically positioning themselves to better compete with Costco, raising concerns about the company's future market dominance and profitability.
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