Got $1,000? 1 Consumer Goods Stock To Buy and Hold for Decades

Costco has delivered a 157-fold return over the past 30 years (a $1,000 stake in 1995 would be worth roughly $157,000 with reinvested dividends), and management is positioning the company for additional long-term growth through international expansion and low-capital real estate strategies; North America (U.S., Canada, Mexico) will still represent about 85% of stores by year-end, but international comparable sales ex-gas rose 8.2% in fiscal 2025 versus 7.3% in the U.S., and in the fiscal first quarter international comps grew 6.8% versus U.S. adjusted growth of 5.9%. The data suggest the warehouse/discounters model is resonating abroad and could extend Costco’s compounding runway, although independent analysts (Motley Fool’s Stock Advisor) did not include Costco in its current top-10 stock picks and disclose positions in the name.

Analysis

A $1,000 investment in Costco (COST) in 1995 would be worth roughly $157,000 today with dividends reinvested, reflecting a 157-fold gain and illustrating the company's long-term compounding track record driven largely by North American expansion. Management still expects the U.S., Canada and Mexico to represent about 85% of the store base by year-end, signaling that historic returns were concentrated regionally even as the company scales globally.

Costco is in the early innings of international growth, recently opening its third store in France and using creative real estate strategies to limit capital intensity. Fiscal 2025 international comparable sales excluding gasoline rose 8.2% year-over-year versus 7.3% in the U.S.; in the fiscal first quarter international comps increased 6.8% while U.S. adjusted comps rose 5.9%, suggesting the warehouse-discount model is resonating abroad and delivering slightly faster top-line growth overseas.

The market signal is moderately positive (sentiment score 0.5) with per-ticker sentiment for COST at 0.7 and a low market-impact score (0.25), implying the news is constructive but not disruptive to prices. Note analyst positioning: Motley Fool discloses a position in Costco yet its Stock Advisor list did not include COST among its current top-10 picks, highlighting divergent views on near-term opportunity versus long-term quality; primary risks are execution and concentration in North America while international expansion scales.

Key Decisions for Investors

• Consider maintaining Costco as a core, long-term holding to capture ongoing compounding and international growth potential given 30-year track record
• Monitor international comparable-sales momentum, new store rollouts (including France) and capital-intensity metrics closely; slowdowns would warrant reassessing exposure
• If seeking higher near-term upside, allocate a portion of incremental capital to higher-growth picks rather than increasing an already substantial Costco position, noting Stock Advisor did not include COST in its current top-10
• Keep position sizing disciplined and consider modest hedges or diversification if portfolio is heavily exposed to North American retail given the current 85% store concentration