10 Low Volatility Stocks to Buy According to Billionaire Ken Fisher

7. Costco Wholesale Corporation (NASDAQ:COST)

Beta Value: 0.97

Dividend Yield: 0.51%

Fisher Asset Management’s Q4 Stake: $2.82 billion

Number of Hedge Fund Holders: 96

Costco Wholesale Corporation (NASDAQ:COST) is a membership-based warehouse club that offers bulk prices on a wide range of products including food, electronics, and household supplies. The devotion of its members fuels the company’s development, with membership fees accounting for a significant portion of its income. Costco Wholesale Corporation (NASDAQ:COST) reported that non-foods were up in the low teens in February, with jewelry, gift cards, and housewares outperforming other departments.

On March 13, DA Davidson reaffirmed its Neutral rating on Costco Wholesale Corporation (NASDAQ:COST) shares, with a price target of $1,000. The firm’s analyst, Michael Baker, attended the grand opening of Costco’s 900th club in Sharon, Massachusetts, the state’s first new Costco store in 23 years. Costco CEO Ron Vachris stated that the corporation is looking into future expansion in the region, with plans to establish up to four more clubs. This development plan is consistent with the company’s impressive sales growth, which reached $264 billion in the last 12 months and has maintained a respectable 11% compound annual growth rate over the last five years.

Aoris Investment Management stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2024 investor letter:

“Firstly, I think we exercised good valuation discipline in our sales of Costco Wholesale Corporation (NASDAQ:COST) and Cintas. The share prices of these two companies had increased by more than 60% and 40% respectively in the year prior to our sale. It can be difficult as investors to remain objective and not ‘fall in love’ with an investment when it is performing well. A higher share price doesn’t make a business more valuable!

We sold both Costco and Cintas simply for reasons of valuation. These are exceptional businesses that we’d love to own again if valuation permits. Their sales allowed us to recycle portfolio capital into more attractively valued businesses.”