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Costco Wholesale (COST)

Stock talk

[edit] Great article - this does a great job of explaining the facts while layi...

Suggestion by Dseg10 on 2008-01-19 00:27:23

Great article - this does a great job of explaining the facts while laying out the underlying strengths of the Costco culture (members loyalty, high employee wages etc.) I would like to hear more about executive management, as this has a lot to do with their insistence on high wages and other unusual operational tendencies. A few years back, I remember a Deutsche Bank analyst was calling for CEO Jim Sinegal's head on account of the high fixed costs. However, Jim went to bat for his philosophy and made a pretty persuasive case in favor of their practices. While you mention the high wages and also note the complications that such a practice introduces, I can't really determine if this is a foolish or wise strategy from this article. I would be curious to know what you think.

Add comments or discussion related to this suggestion here.

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