The Costco Success Story: From $2,400 Investment to $1 Million Returns
The Costco Success Story: From $2,400 Investment to $1 Million Returns
And it's no soaring tech giant. Building a $1 million position in a stock isn't as hard as you might think, and it doesn't require a huge initial investment. However, you'll still need two key ingredients: time and solid, consistent returns.
Find a business that can steadily build market share and earnings power over several decades, and you've got a great shot at seeing life-changing levels of gains.
The math
The retailer in question is none other than Costco (NASDAQ: COST), which went public in Dec. 1985 at an IPO price of $10 per share. Adjusting for stock splits, that IPO price was approximately $1.67 per share.
- Investing $2,400 at that time (or about $6,500 in today's dollars) would have given you about 1,400 shares of the warehouse retailing specialist.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.