November 2023 Costco (COST) Knob Creek Single Barrel Bourbon Review
November 2023 Costco (COST) Knob Creek Single Barrel Bourbon Review
November 2023
Authors: Allan Maule, James Hatfield
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Website: costco.com
Twitter: @costco
CEO: W. Craig Jelinek
Founder: Jim Sinegal and Jeff Brotman
Market Cap at Time of Article: $244.59B
Current Analyst Recommendations (29 analysts’ price targets average): $595.25, so at its current price of $550.28, it is slightly undervalued, according to analysts.
Revenue: $242B last quarter (+9.5% YOY).
Insider Ownership: 0.2%, which is not much, so the insiders don’t have as much of a stake as we would like to see.
What makes Costco (COST) worth your hard-earned money for the next decade or more?
Costco just got a new CEO who has worked there since 1984 and worked his way from the bottom to the top. This is extremely rare, but shows the person running the company can relate to all the staff and knows the business from the inside out. That’s the type of leadership that will help Costco thrive as it continues to scale. And considering how higher inflation costs have increased consumers’ appetite for deals (even as shoppers continue to spend like crazy!), we don’t see the revenues of Costco slowing down anytime soon.
You may look at a company of this size and think it’s not a growth stock, but they continue to build Costco globally and have plenty of growth ahead. Costco has wild fanatics and has been around for quite a long time. We see Costco as a company that can handle succession and staying power, so we expect Costco to be a leader for decades to come.
Why talk about Costco to all your friends and family?
They always say, “Buy what you know,” and your family and friends know Costco. This is a stock to get people started in the market and a stock that you can keep purchasing over and over again as you build a meaningful position. Many family and friends may not have a Costco in their area yet, but still drive long distances just to shop there. That’s the power of an established big box brand. Even as Costco is making revenue from its memberships, it also is focused on efficient operations—keeping prices optimal for customers and finding ways to keep theft extremely low.
How is this company disruptive?
Retail is not an easy industry, and you don’t have to look too far at companies like Dollar General or Target to see they struggle with theft, growth, and battling against e-commerce. Costco has found a way to attract more members (which is disruptive), stock its stores with pallets (easy on operations), and compete with low prices. They also have partnerships that give customers great deals on buying or renting a car, vacations, and other perks not found at other retailers. Costco is strategic about where they build stores globally, and they have plenty of growth ahead of them. Costco may appear prominent and old from the outside, but it’s still a story being told and a stock to hold on to for decades.
Conclusion
We love Costco, customers love Costco, and their story is an easy one to admire. Costco is a company you could add to your portfolio as a cornerstone holding or add it to your portfolio across the dozens of stocks you own. So, whether you have a large or small number of holdings, we believe Costco should be one of those positions for you.
Knob Creek Single Barrel Bourbon
Proof: 120 Price: $56
Overview
To pair with the big box powerhouse of Costco, the DubyaDubya team broke out one of our high gravity favorites. Yes, Knob Creek is a label owned by the bourbon giant Jim Beam, but as Costco has shown, bigger can also mean better. As Byron alluded back in May of 2022, the divinely potent single barrel edition of Knob Creek is a real winner—just be ready for a 60% alcohol spirit that does not play games with your palate.
Nose:
This one practically explodes out of the bottle, and not in a nice way. We recommend decanting this bourbon, or at least letting your glass sit for a minute before you sniff. Minute up? Then get ready for a flood of allspice, cinnamon, and sandalwood cooked over a caramel-coated pot. You can also detect some orange and honey if you’re patient.
Taste:
The burnt caramel is the first thing you’ll notice, and the fruit notes become more prominent. Look for orange and peach with dried cherries, as though they were cooked with a brown sugar glaze and lots of cinnamon—over high heat.
Finish:
The fiery strength of this whiskey helps the caramel finish linger for a long while. Look for vanilla, chocolate, and orange to mix with a pleasantly woody energy.
This whiskey hits hard, but if you like high gravity bourbons at a good price (and at DubyaDubya, we most definitely do!), then Knob Creek Single Barrel belongs on your shelf.
Overall Rating: 3.5/5
