Here's Why Costco's Competitive Advantage Is So Powerful

When legendary investor Warren Buffett looks for stocks to own, he emphasizes businesses that possess some sort of competitive advantage. This key characteristic is important for long-term investors because it signifies a company does things better than its rivals, resulting in improved financials, faster growth, and hopefully a rising stock price.

Taking a look at Costco (NASDAQ: COST), we'll see a successful business that has gotten even stronger over time. The operator of warehouse clubs has one critical advantage that has allowed it to thrive throughout its history: its scale.

Let's take a closer look at what makes this company so special.

Source Fool.com