Costco Wholesale (NASDAQ: COST) traces its roots back to the mid-1970s when it opened its first warehouse. It has since evolved and become a popular place for members to shop. The business has done incredibly well, and shareholders have been amply rewarded. Over the last 10 years, its shares gained 588%, easily trouncing the S 500's 184% increase.
While Costco has been a very successful company, retailers can't rely on their past or their reputation. Bankruptcy court is filled with once-prominent franchises such as Toys R Us and Sears. That's why it's important to understand the underlying business. Does Costco still offer an attractive investment opportunity?
Image source: Getty Images.
Source Fool.com