Warren Buffett's Next Bulk Purchase Should Be Costco
The billionaire’s best bet for Berkshire Hathaway’s next deal may be right under his nose.
Warren Buffett should put Costco in his shopping cart.
Photographer: andykatz/iStock Editorial/Getty Images
Warren Buffett says “nothing can stop America.” To put his money where his mouth is and spend some of his $137 billion stash before this crisis is over, he wouldn’t have to look far. If there’s one company that warrants the dealmaker’s attention, it may be Costco Wholesale Corp., a retailer in which Buffett’s Berkshire Hathaway Inc. already owns a stake.
At Berkshire’s virtual shareholder meeting last month, Buffett signaled that the Covid-19 pandemic hasn’t afforded him deal opportunities at bargain-basement prices the way past economic meltdowns have. Despite the nationwide shutdowns that are just starting to lift and a soaring unemployment rate, the S&P 500 Index is only 8% off its February all-time high. That’s partly due to aggressive actions taken by the Federal Reserve to mitigate the crisis, though one can’t deny that there exists an astonishing disconnect between stock prices and the economic realities of many Americans right now.