1 Major Risk in Buying Costco Stock Right Now

Costco Wholesale (NASDAQ: COST) has become a phenomenon. Its differentiated warehouse retail model is incredibly reliable, and Costco consistently enjoys strong growth. Beyond that, it has several growth drivers that make it even more compelling as a stock with massive potential.However, like anything in life, Costco isn't perfect. If you're considering buying Costco stock today, there's one major risk you need to know about as well.Investors and shoppers alike love Costco. It offers rock-bottom prices on its products, and it's a rare company that boasts low gross margins instead of high ones. Most retailers make money by marking up prices and taking profits. Costco, counterintuitively, tries to provide the lowest possible price, and it makes money instead on something else -- membership fees. So while it seems like a retailer, its business is really in selling memberships.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool