Costco, despite being one of the best businesses in the world, is currently trading at around 50-60x earnings, which reflects a peak valuation; Semper struggles to justify 25x earnings for Costco despite its exceptional quality because it cannot significantly expand margins further or grow store count/square footage much faster than it has historically.
normativepending
Speaker
Chris SemperEvidence Quote
“Costco... traded over 60 times... can't expand the margin... 25 times... despite it being one of the best businesses.”
Source
We Asked Chris Bloomstran Why He Won’t Own the S&P 500 At These Levels — And What He Does Instead— Excess ReturnsCreated: 8/12/2026, 6:13:17 PM
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