Money Manager Bobby Edgerton of Capital Investment Companies considers himself to be a balance-sheet man first and foremost. He concentrates on cash-rich companies, one of them being Costco Wholesale Corporation (COST).
“I manage retirement plans and individual accounts as opposed to mutual funds. My clients own their own stocks and/or bonds. They have a say-so on common-sense decisions. I am probably managing maybe $100 million and concentrate pretty much on cash-rich, debt-free companies,” Edgerton says.
“My guess is I may never sell Costco. I think my average cost basis for most people around Costco is in the 40s, and the stock is at $150. We’ve owned it probably almost 10 years now,” he adds.
While Edgerton understands the online ordering trend, he believes consumers are going to Costco for other reasons.
“People go to Costco for entertainment. They are not going to just sit and order everything online. Women, especially, like going during the day to Costco,” he says.
“The person who lives paycheck to paycheck, he or she is going in for one or two items and buying five or six items,” Edgerton adds.
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