Costco's hidden power

In this installment of Investor Beat: The wholesale club hits an all-time high after reporting big earnings.

By Motley Fool Investor Beat May 30, 2013 5:11PM
Shares of Costco (COST) hit an all-time high on Thursday after the retailer reported a 19% increase in third-quarter profits. Costco racked up strong sales in both its domestic and international stores. 
 
What's behind Costco's success? Will the retailer continue to be a big hit on Wall Street? In our lead story on Investor Beat, Motley Fool analysts Andy Cross and Matt Koppenheffer discuss the future of Costco.
Shares of NV Energy (NVE) rose more than 22% Thursday morning on the news that it's being acquired by Berkshire Hathaway (BRK-B) subsidiary MidAmerican Energy. Berkshire Hathaway CEO Warren Buffett says NV Energy is a great fit. Is the deal a great fit for investors? Investor Beat discusses Berkshire's big buy. 

Shopping cart in supermarket copyright PhotoAlto, James Hardy, PhotoAlto Agency RF, Getty ImagesAnd we close Thursday's episode with two stocks to watch. Matt is watching Bank of America (BAC). Andy is watching Jos. A Bank (JOSB).

The Motley Fool's 12 top stocks for 2013 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now

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4Comments
May 30, 2013 9:59PM
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Hats off to Costco CEO Craig Jelinek who has proven that if you pay workers well (about $40,000 year after just a few years of employment),and provide health insurance, not only does a company attract a higher caliber of worker and reduce employee turnover to about 5% (unheard of in retail), but the company gets loyal and professional workers who will go the extra mile for the customers and the company.  He has stood up to shareholders who think workers have to be paid poverty level wages in order to increase company profits, a strategy used extensively by that other big box store.  Also paying employees well allows them to stay off government assistance so state and federal funds aren't drained to subsidize low wage employees, making Costco essentially a "good corporate citizen."  If only more leaders of companies thought this way!
May 30, 2013 8:14PM
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shop Costco  all the time....clean store, employees are helpful.  good price on gas.  I always find what I need.

40# of bird seed is a good price.  The Chocolate layer cake is soooo good!!!!!! Bakery is clean. Fresh meat and vegetables. Good parking, gas station right there.

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I specifically shop at Costco because they treat their employees well, pay them a livable wage, and provide decent benefits including good health insurance.  I get no satisfaction from shopping at Walmart and saving 13 cents on a can of beans and realizing they are able to do this because they pay their employees terrible wages.  It's immoral to do this, and immoral for me to shop there.
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