Costco is the only stock to buy in a recession !!

@jwportfolio

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Promoted product

Costco Wholesale Corporation

Why it worked

The video leverages a strong, contrarian claim ('only stock to buy in a recession') and backs it up with clear, data-driven points about Costco's business model and historical performance during economic downturns, making it compelling for investors.

Summary

The video argues that Costco is a strong stock to buy during a recession due to its membership model and its ability to offer cheap bulk products. It highlights that during the 2008-09 recession, Costco not only survived but grew its membership base and market share.

Structure

1Introduction: Costco as a recession-proof stock
2Reason 1: Membership model provides recurring revenue
3Reason 2: Cheap and bulk products attract customers during downturns
4Evidence: Costco's performance during the 2008-09 recession
5Conclusion: Costco's ability to gain market share in a recession

Product placement

Costco Wholesale Corporation (COST): ACTS - It is a retail corporation whose stock is being analyzed and recommended. Removing it would change the video's topic and analysis. It appears as a stock ticker and company name on screen, and its business model and financial performance are discussed.

Original caption

Costco is great in you good and bad economies #cost #costco #stocks #investing

More from @jwportfolio

On-screen text

Costco is the only stock to buy in a recession !! COST Costco Wholesale Corporation 956.99 +469.57% Past 10 Years NASDAQ - USD 6M YTD 1Y 2Y 5Y 10Y ALL IF I KNEW RECESSION COMING, COSTCO WOULD BE FOR SURE. One of my favourite businesses of ALL TIME. 1. MEMBERSHIP MODEL Recurring revenue + loyal customers COSTCO WHOLESALE GOLD STAR COSTCO WHOLESALE EXECUTIVE MEMBER COSTCO WHOLESALE BUSINESS MEMBER COSTCO WHOLESALE GOLD STAR MEMBER THEIR MEMBERSHIP MODELS ALLOW THEM TO MAKE MONEY IN A RECESSION IF THERE IS IT WOULD ACTUALLY BUY MORE MEMBERSHIPS TO GET ACCESS PRODUCTS THAT THEY OFFER. 2. CHEAP + BULK People trade down and buy in bulk A GREAT POINT. WHEN THERE IS A RECESSION, PEOPLE ARE FORCED THINGS AND ALSO IN BULK EXACTLY WHAT COSTCO OFFERS. Costco recession bull case Costco could actually gain market share in a recession. When consumers become more price-conscious, Costco's low prices and bulk savings become more attractive, potentially pulling customers away from higher-priced retailers. We saw evidence of this during the 2008-09 recession: Costco's sales declined only 1.5% in 2009, while it added 2.3 million members and remained profitable. Q4 Capital +1 THAT IS WHY EVEN IN 2009 WITH THE BIG FINANCIAL CRISIS, COSTCO ONLY DECLINED 1.5% IN SALES AND ADDED 2.3 THEIR MEMBERSHIPS. IT SAYS HERE, COSTCO COULD ACTUALLY IN A RECESSION. THIS IS BECAUSE PEOPLE LEAVE THE HIGHER PRICED RETAIL STORES AND GO TO COSTCO TOUGH. YOU CAN SEE THE GROWTH YEAR HERE.

Transcript

If I knew recession coming, Costco would be for sure. One of my favourite businesses of all time. Their membership models allow them to make money in a recession, if there is. It would actually buy more memberships to get access to those cheaper products that they offer. A great point. When there is a recession, people are forced to buy cheaper things and also in bulk. And that is exactly what Costco offers. Costco recession bull case. Costco could actually gain market share in a recession. When consumers become more price-conscious, Costco's low prices and bulk savings become more attractive, potentially pulling customers away from higher-priced retailers. We saw evidence of this during the 2008-09 recession: Costco's sales declined only 1.5% in 2009, while it added 2.3 million members and remained profitable. That is why even in 2009, with the big financial crisis, Costco only declined 1.5% in sales and added 2.3 million to their memberships. It says here, Costco could actually gain market share in a recession. This is because people leave the higher priced retail stores and go to Costco. Tough. You can see the growth year here.