A $1,000 investment in Costco Wholesale (COST +1.10%) stock in 1995 would be worth $157,000 today, assuming dividends were reinvested to purchase additional shares. That is a rare 100-plus bagger, showing the power of patiently holding shares of quality businesses for a lifetime of compounding returns.
Its expansion in North America largely drove those returns, but it is still in the early innings of international expansion. If you're looking to park extra cash in a solid stock right now, you can't go wrong with Costco over the long term.
Image source: Getty Images.
Why buy Costco stock
The company's stores in Canada, the U.S., and Mexico are expected to account for 85% of its store base by the end of the year. However, Costco is starting to show significant potential for international expansion. Management continues to target locations globally, having recently opened its third location in France, while maintaining low capital investment through creative real estate strategies.
NASDAQ: COST
Key Data Points
In fiscal 2025, international comparable sales, excluding the impact of gasoline sales, grew 8.2% year over year, compared to 7.3% in the U.S. International sales continued to grow slightly faster than the U.S. in the fiscal first quarter, up 6.8% compared to the U.S. market's 5.9% increase on an adjusted basis. The balanced growth across these markets demonstrates how Costco's discount warehouse model is resonating globally, offering the potential for excellent returns for decades to come.
