Better Buy: Costco vs. Home Depot
Many companies have been struggling as inflation remains a huge problem, consumer confidence is at historically low levels, and recession fears are worrying everyone. Even blue-chip businesses like Costco Wholesale (NASDAQ: COST) and Home Depot (NYSE: HD), which many investors likely view as safer options no matter what the macroeconomic picture looks like, are facing slowdowns.
It's not all bad news, however. I think both companies have positive traits worthy of a closer look. But which of these major retail stocks is the better buy?
Legendary investor Warren Buffett's core philosophy is that he always seeks businesses with some kind of economic moat (attributes that allow them to defend themselves against the competition). It's hard to argue that Costco doesn't have one of the strongest moats around. In fact, Buffett's right-hand man, Charlie Munger, is a huge fan of the company.
Source Fool.com
