This was one of Charlie Munger's favorite stocks but im wondering if he would take profits at these levels.
-Trading at 52x earnings
-More high income earners are shopping at Walmart. People only have X amount of dollars to spend each week. Seems more people are choosing $WMT, $TGT, $BABA, $AMZN, TEMU, and TikTok shop . FYI TikTok Shop made $11B in revenue in 2023 which is shocking and a threat to US companies. People like cheap Chinese stuff they can put in storage units.
https://fitsmallbusiness.com/tiktok-shop-statistics/
-$COST is lowering prices on some products. Lower prices doesn't translate to higher revenue and profits.
-Membership price increase is rumored to happen in 2024, if i does, im curious is renewals will drop off. Seems unlikely though.
-The consumer is getting weaker, unemployment is rising, so are default rates. People are shopping at discount stores looking for deals and financing purchases with buy now pay later. I think the American consumer will switch from spending to saving.
-Next earnings due: 5/30/24
-The price of a hotdog will never change so we have that.
I like the company and their model, not sure about the valuation moving into a weaker economic environment late 2024 and 2025.
