I can’t get enough of Costco Wholesale Corporation (NASDAQ:COST)‘s stakeholder-friendly business. BusinessWeek recently shared a quote from CEO Craig Jelinek in an article about the warehouse retailer’s secret sauce:
I just think people need to make a living wage with health benefits. It also puts more money back into the economy and creates a healthier country. It’s really that simple.
Yes. It really is that simple. Some of the ways too many corporate management teams (and investors) view “bolstering value” aren’t — they’re destroying it.
Paving the way to a stronger future
Some corporations build a map to true value for the long term, creating paths leading to healthy, vibrant destinations. That’s a win for everyone, including investors. Companies and businesses of all kinds require a strong economy in which to survive. The strongest companies with the most solid, visionary managements are obviously helping reverse the damage of some of the supposed “value stocks” that could, quite frankly, stagger and burn money for ages and eventually go to zero. That’s how investors get burned, too.
Bankruptcy helps no one. Nor do corporate managements that get stuck like deer in headlights and hold on to their cash like terrified misers.
However, I have a nice surprise. Apple Inc. (NASDAQ:AAPL) actually is a “values” stock exhibiting traditional value stock attributes; this is one heck of an opportunity for investors who are still too leery of some higher valuations despite high-quality visions.
Recent pessimism knocked Apple Inc. (NASDAQ:AAPL)’s shares down from previous lofty highs, and its forward price-to-earnings ratio of 11 and PEG ratio of 0.65 is a ridiculous no-brainer. Apple Inc. (NASDAQ:AAPL) is most certainly not struggling to survive. It’s an example of when the very best opportunities give the best of both worlds.
Some of the most valuable companies may come with high price tags, but as they boost our economy, foster stronger consumer spending, hire more people, and help heal the economy, they’ll bolster investors’ portfolios, too.
Granted, we can’t buy premium-priced stocks without judging their long-term prognosis and competitive advantage. We should look for the greatest companies that are doing and can do much good in the world, and occasionally consider the fact that they could be better values in many ways. That’s values investing. Validating and supporting the value-destroyers leads investors — and their portfolios — nowhere.
The article A New Way to View “Value Investing” originally appeared on Fool.com and is written by Alyce Lomax.
Alyce Lomax owns shares of Costco Wholesale (NASDAQ:COST). The Motley Fool recommends Amazon.com, Apple, and Costco Wholesale. The Motley Fool owns shares of Amazon.com, Apple, Costco Wholesale, and RadioShack.
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