Tsai Capital Corporation, an investment management firm, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. For the year ended December 31, 2023, the Tsai Capital Growth Equity Strategy gained 56.81%, gross of fees, and 55.07%, net of fees, as compared with a total return of 26.29% for the S&P 500 Index. Since its inception 24 years ago, the strategy gained 691%, before fees, and 472%, after fees, compared to a 401% total return for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Tsai Capital Corporation featured stocks such as Costco Wholesale Corporation (NASDAQ:COST) in the fourth quarter 2023 investor letter. Based in Issaquah, Washington, Costco Wholesale Corporation (NASDAQ:COST) engages in the operation of membership warehouses. On January 12, 2024, Costco Wholesale Corporation (NASDAQ:COST) stock closed at $683.24 per share. One-month return of Costco Wholesale Corporation (NASDAQ:COST) was 3.71%, and its shares gained 40.80% of their value over the last 52 weeks. Costco Wholesale Corporation (NASDAQ:COST) has a market capitalization of $303.173 billion.
Tsai Capital Corporation stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its fourth quarter 2023 investor letter:
“Costco Wholesale Corporation (NASDAQ:COST) ($660.08 – up 49.0% for the year. Recent high $681.91): Costco operates more than 860 warehouses worldwide and provides its members with a deep value proposition, promising not to charge more than a 15% markup on goods versus its own cost. This in turn has resulted in an extremely loyal membership base of more than 70 million, over $1,900 in net sales per square foot, and high-margin, recurring membership fees. Since 2012, W. Craig Jelinek has been at the helm of Costco and has perpetuated the values and culture of the company’s founder, Jim Sinegal. And while Mr. Jelinek recently stepped down as Chief Executive Officer, we see little change under his successor, Ron Vachris, who has worked at the firm for more than 40 years, having started out as a forklift driver. In many ways, Costco is a cult (I mean that in a positive way), and its allure is only just beginning to spread to international markets, including China. With a stellar management team, strong returns on capital and ample opportunities for growth, domestically and internationally, we believe Costco will continue to compound earnings at a low double-digit rate.”
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Costco Wholesale Corporation (NASDAQ:COST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Costco Wholesale Corporation (NASDAQ:COST) at the end of third quarter which was 67 in the previous quarter.
We discussed Costco Wholesale Corporation (NASDAQ:COST) in another article and shared the list of companies with the most employees in the US. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
