As part of its earnings announcement last week, Costco (NASDAQ:COST) said that it plans to begin repurchasing its own shares this quarter. Should investors follow the warehouse retailer's lead?
In the video below, Fool contributor Demitrios Kalogeropoulos offers his take, arguing that Costco's stock repurchase plans are likely motivated by capital allocation concerns, and not necessarily because management views the stock as a bargain right now. Still, the stock is a bit less expensive than it was a few months back. And, thanks to its leadership position in the industry, Costco shares are hardly ever cheap. That's why investors who want to own the stock would be wise to buy opportunistically and build up a position over time, he contends.