Question: is COST worth buying at today's prices? 🤔 The consumer defensive sector is looking awfully richly valued with everyone having rotated out of tech and in anticipation of market declines / recession.
If you are concerned about the current market decline I would recommend waiting on it for a bit. COST's advantage isn't a time related event, so it's not an opportunity that will disappear in a month. If you want to play it safe I don't see any issue with holding out on investing.
I'm less worried about the market / the timing, and more worried about if COST is the best stock, even with its advantages. I just feel like it's done a little too well over the last 3-5 years, and now its premium valuation reflects a market that has overbought defensive names, perhaps "pricing them to perfection." While leaving higher growth names left for dead.
But that's just me, I love high return, so I (usually) have to love high risk! I do think COST could be a good core portfolio investment candidate, but I'd be surprised if it manages to grow fast enough to get past 10% forward CAGR from today's valuations. Maybe I'm wrong though, from 1986 to today, the stock has delivered 12.7% CAGR to shareholders.
Sorry for misunderstanding your question. I get your point, COST really isn't the best pick if your looking for a high-risk, high reward stock. It's more suited for a position similar to that of an index fund, and is a good stock to pick if you are looking to invest in a stock and mostly leave it alone. If you are looking for a high-risk, high reward stock I'd probably recommend something outside of the consumer sector as typically those don't usually yield the high returns you are looking for. I can write a piece on this if you want me to.
Sure! I'd be curious what high-risk plays are catching your eye, if you have time and desire to write about it. Admittedly, this is a risk-off environment, so buying up volatile names now feels extra-risky and contrarian, despite the fact that many of them are way cheaper than they were 9 months ago.
Question: is COST worth buying at today's prices? 🤔 The consumer defensive sector is looking awfully richly valued with everyone having rotated out of tech and in anticipation of market declines / recession.
If you are concerned about the current market decline I would recommend waiting on it for a bit. COST's advantage isn't a time related event, so it's not an opportunity that will disappear in a month. If you want to play it safe I don't see any issue with holding out on investing.
Thanks!
I'm less worried about the market / the timing, and more worried about if COST is the best stock, even with its advantages. I just feel like it's done a little too well over the last 3-5 years, and now its premium valuation reflects a market that has overbought defensive names, perhaps "pricing them to perfection." While leaving higher growth names left for dead.
But that's just me, I love high return, so I (usually) have to love high risk! I do think COST could be a good core portfolio investment candidate, but I'd be surprised if it manages to grow fast enough to get past 10% forward CAGR from today's valuations. Maybe I'm wrong though, from 1986 to today, the stock has delivered 12.7% CAGR to shareholders.
Sorry for misunderstanding your question. I get your point, COST really isn't the best pick if your looking for a high-risk, high reward stock. It's more suited for a position similar to that of an index fund, and is a good stock to pick if you are looking to invest in a stock and mostly leave it alone. If you are looking for a high-risk, high reward stock I'd probably recommend something outside of the consumer sector as typically those don't usually yield the high returns you are looking for. I can write a piece on this if you want me to.
Sure! I'd be curious what high-risk plays are catching your eye, if you have time and desire to write about it. Admittedly, this is a risk-off environment, so buying up volatile names now feels extra-risky and contrarian, despite the fact that many of them are way cheaper than they were 9 months ago.