10 Safe Stocks to Buy According to Billionaire Chilton

3. Costco Wholesale Corporation (NASDAQ:COST)

Chilton Investment Company’s Stake Value: $282,887,492

 Number of Hedge Fund Holders: 65

Costco Wholesale Corporation (NASDAQ:COST) ranks 3rd in our list of safe stocks to buy according to billionaire Chilton. Costco Wholesale Corporation (NASDAQ:COST) is a leading global retailer known for its membership-based warehouse stores, offering a wide range of high-quality products in bulk at competitive prices to both individual consumers and businesses. Costco Wholesale Corporation (NASDAQ:COST)’s primary appeal lies in its ability to offer bulk goods at discounted prices, which is particularly attractive to groups like college students or households sharing expenses. This model remains popular, especially during periods of economic stress, as it provides lower and middle-income US consumers with a cost-effective shopping option.

Costco Wholesale Corporation (NASDAQ:COST)’s strategy not only helps maintain strong consumer foot traffic but also enhances shareholder value. Costco Wholesale Corporation (NASDAQ:COST)’s investor metrics reveal a remarkable return on common equity of 31.64% over the past twelve months, significantly higher than the sector median of 10.70%. As of the end of Q1 2024, Chilton Investment Company held 386,126 shares of Costco Wholesale Corporation (NASDAQ:COST), valued at $282,887,492 making it one of the safe stocks to buy according to billionaire Chilton. This investment accounted for 7.75% of Chilton’s total portfolio, according to regulatory filings.

ClearBridge Sustainability Leaders Strategy stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q2 2024 investor letter:

“Consumer staples holdings were also standouts in the quarter, such as Costco Wholesale Corporation (NASDAQ:COST), which continues to execute well and delivered better than expected earnings, helped by strong traffic driving better expense leverage. Customers also looked to be shifting toward more discretionary purchases.”