Jim Cramer Says “The Costco Cart’s One of the Best Bargains on Earth”

Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer shared insights on. During the episode, Cramer highlighted the reason his Charitable Trust owns the stock. He commented:

“There’s a reason, by the way, that the trust also owns Costco. We shop there constantly. We have four different Costcos where I live, and I always visit one if I see one. I do that because it’s a core position, but… also because my wife and I just can’t stay away from the place. I’ve never been worried. Richard Galanti, the former CFO, put the fear of God into all of Costco’s suppliers to ensure they kept prices low. The Costco cart’s one of the best bargains on earth.”

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Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouses providing branded and private-label products across groceries, appliances, apparel, electronics, and household goods. The company also offers services such as pharmacies, fuel stations, optical centers, food courts, and e-commerce platforms. In the last week of August, Cramer suggested buying the company’s stock. He said:

“I want you to buy more Costco here. I was actually going back and forth on Costco, what’s the right level? It is under 50 times earnings right now. I feel very good about buying some Costco, almost actually picked some up for the Charitable Trust. But I’ll tell you the truth, it’s so far above my basis that I don’t want to tempt fate. I think you got a winner in Costco right here, right now. Remember, they can pass on the price of beef because they are about the membership, not about the price of beef.”

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Disclosure: None. This article is originally published at Insider Monkey.