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Thanksgiving is the one day you remember two things: you overbought food, and bulk buying is kind of amazing.
Somewhere out there, a warehouse club is looking at your overflowing fridge and smiling, and if you own the company stock, you benefit.
Join Derek Jeter and Adam Levine
They’re both investors in AMASS Brands Group. You can join them and get up to 23% bonus stock. But only if you invest by Thursday, Dec. 4.
Why invest? They’re growing fast. Their brands cover everything from organic wine to protein seltzers. So with consumers seeking healthier options in the $900B beverage market, it’s no surprise AMASS has made over $80M to date, including 1,000% year-over-year growth.
They have even more ambitious plans for the future too. They’ve reserved the Nasdaq ticker $AMSS, enlisted a major investment bank to fuel their growth, and plan to 3X their retail footprint by 2028.
But your chance to amplify your investment with bonus stock ends soon. Become an AMASS Brands Group shareholder and secure your bonus stock by Dec. 4.
This is a paid advertisement for AMASS’s Regulation CF offering. Please read the offering circular at https://invest.amassbrands.com
Strategic Positioning
Costco Wholesale (NASDAQ: COST) runs membership-only warehouses that sell everyday essentials, big-ticket items, and a surprising amount of “I didn’t plan to buy this, but here we are.”
What really matters to you is not the turkey. It’s the membership fees:
Members pay every year just to keep shopping.
Renewal rates sit in the low 90% range in core markets.
That membership income is high margin and very steady.
On top of that, the typical household income is high, which means these shoppers are less likely to cancel memberships when the economy wobbles.
They see it as a way to save money, not a luxury to cut.
You’re effectively buying into a club where people line up to hand over recurring revenue.
Recent Momentum
The business just wrapped another year of growth:
Sales are rising at a healthy clip, even if they missed Wall Street’s same-store wish list by a hair.
Earnings per share are growing faster than sales.
Membership income is climbing double digits, including a big jump in the latest quarter.
Online sales are also becoming real.
E-commerce now accounts for a meaningful slice of total revenue, growing in the low to mid teens, as more people let the warehouse show up at their door instead of pushing a cart on Saturday.
The stock, meanwhile, has taken a breather. It’s roughly flat for the year and more than 10% off its 52-week high.
That’s not a crash, but it is a reset in expectations, just as the fundamentals keep improving.
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What You’re Actually Betting On
If you buy COST here, you’re betting on three simple things:
People will keep paying to save money.
Membership fees grow as more families join and existing ones renew and upgrade.Those members will keep showing up.
High renewal rates tell you this isn’t a fad. Once you build your routine around the warehouse runs, you’re hooked.The footprint and digital reach will keep expanding.
New stores plus stronger online offerings bring more members into the funnel and give existing ones more reasons to stick around.
You’re not chasing a one-time pandemic bump or a single hot product.
You’re buying into long-term habits and a brand that has been winning across good times, bad times, and “we bought a kayak, I guess we’re kayak people now.”
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Valuation Check
Here’s the part where your inner value investor grimaces. COST trades around 50 times trailing earnings with a dividend yield under 1%. That is not cheap on any classic metric.
Why do people still pay up?
It has grown revenue in 33 of the last 34 years.
Membership income is predictable and high margin.
Management occasionally drops big special dividends when excess cash piles up.
This is a pay a premium for resilience story. You’re not getting a bargain; you’re getting a track record. Your edge is holding period, not clever timing.
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Action Plan
Think of this as the main dish on your long-term investing table, not the spicy side you brag about and then regret.
Starter position:
If you don’t own it, a pullback from the highs can justify a starter buy. Accept that you’re paying up for quality and lengthen your time horizon.Add on actual dips, not vibes:
Look to add if the stock sells off another 10–15% on short-term headlines (like slightly softer comps) while membership and renewals stay solid.Position size:
For most people, 1–3% of a stock portfolio is reasonable. Big enough to matter, small enough that a valuation squeeze won’t ruin your month.
You’re not trying to buy the exact bottom. You’re trying to let a great business keep compounding while you go back for seconds.
Catalysts To Watch
You don’t need fireworks, but a few things are worth your attention:
Membership income and renewal rates: The heartbeat of the story. If those slip, you recheck everything.
New warehouses: Progress on planned openings tells you there’s still runway in new cities and countries.
E-commerce growth: Steady double-digit online growth keeps COST relevant for younger shoppers and busy families.
Dividends and specials: Regular hikes plus the occasional big special payment are extra gravy on top of capital gains.
As long as these are trending in the right direction, short-term sales noise is just that: noise.
Risks
Even the best main course can be overcooked:
Valuation compression: If growth slows more than expected, the market can pull the multiple down quickly, even if the business is fine.
Consumer downturn: A hard recession could finally dent big-ticket spending, even for higher-income households.
Competitors: Sam’s Club and BJ’s will happily copy anything that works and undercut on price where they can.
Expansion stumbles: Aggressive global growth always risks a few misfires. Enough of them and returns slide.
You don’t need to panic about these, but you should be willing to reassess if membership stalls, renewal rates slip, or margins start fading.
What A Win Looks Like
A realistic worked out scenario looks like:
Revenue and earnings grow at a mid-single to low-double-digit pace for years.
Membership income climbs steadily, with renewals staying north of 90%.
New warehouses and online channels add to the pie without crushing profitability.
The stock gives you a mix of price appreciation, a slowly rising dividend, and an occasional special payout that feels like a surprise dessert.
If that’s what the next five years look like, buying after a holiday-season pullback will probably feel pretty reasonable in hindsight.
Final Take
This warehouse club is basically Thanksgiving in stock form: not flashy, a little heavy, and somehow the thing everyone keeps going back to.
Carts are full, members are loyal, and the business has proven it can grow through just about any economic mood.
At this price, you are not getting a steal.
You are paying for reliability. If you like the idea of owning a company that wins when people feast and when they tighten their belts, giving COST a small, permanent seat at your portfolio’s table might be the kind of long-term habit you’ll be thankful for later.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
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