Dueling Fools

Dueling Fools
November 18, 1998

Cutting Costco
Costco price (11/17/98): $60 3/16

Warehouse clubs are here, but are they here to stay? This week Dueling Fools presents a battle of bulk when Yi-Hsin Chang (TMF Puck) and Rick Munarriz (TMF Edible) wage a war of the words over the merits of niche leader Costco (Nasdaq: COST).

So, stock up -- the Duel's about to go down. And don't miss this week's Duel Flashback, where we once again kick the tires of growing automotive retailer Republic Industries (NYSE: RII).

You Get to Vote!

Once you've read the arguments and the rebuttals, it's your time to cast your vote. We'll tabulate results each week and revisit them from time to time to see whether you were right! As always, we invite you to join us in the Dueling Fools Message board to continue the duel.

[Any suggestions, comments, praise, or flames, please send them along to the Dueling Fools Team.]

The Bull...
I'm proud to admit it: I'm a lover of Costco (Nasdaq: COST). Once you become a card-carrying member, as I and several fellow Fools have, you just can't help but wax poetic about it. That's actually how Costco generates most of its new memberships -- through word of mouth. The company's policy is to "limit advertising and promotional expenses to new warehouse openings and occasional direct-mail advertisements."
The Bear...
So, Yi-Hsin loves Costco. Beautiful. It's her hernia if she enjoys buying Spam by the ton and the humiliating task of having your receipt checked on the way out. I know this Duel should be more about Costco rather than Yi-Hsin, but there's a colorful anecdote here that I can attribute to my fellow Fool and resident warehouse club addict that I think you should know about.

Results for last week's Merck Duel

Answer Percentage
I can't make up my mind


TMF Parlay's Bull argument


TMF RFK's Bear argument


They were both excellent


They were both lame