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With nearly 80 million paid members and 900 warehouses, Costco ranks among the largest retailers in the United States, driven by vast economies of scale. Costco’s investment thesis rests on four pillars: (1) a membership model that locks in customer spend, (2) unmatched pricing power from scale, (3) prudent international expansion, and (4) a fortress balance sheet. While its premium valuation (54x forward earnings) demands patience, the company’s 7.23% revenue CAGR and 10.7% EPS growth projections justify the multiple for long-term investors. E-commerce sales are driving an increasing portion of overall growth, with +16% growth YoY in the first quarter of 2025. Risks like economic cyclicality and competition are mitigated by Costco’s 90%+ membership renewal rate, focus on consumer staples not subject to discretionary trends, and $6.67B net cash position.