How does Costco make money? Is it a good company?

Please read the first the article I wrote a few days ago about Costco, “Costco has been disrupting retail industry”. eCommerce The e-commerce net sales generated by Costco’s e-commerce division accounted for approximately 6% of the company’s net sales in 2020, which has doubled from 3% in 2015. At the peak time of the pandemic … Continue reading “How does Costco make money? Is it a good company?”

Ge Ba’s wonderful views on the article “Misunderstanding of price and value”

Many people confuse “value” and “price”. In fact, if you think about it carefully, there are many of our own practices that also help you “confuse” the two. Let me cite three examples below. “Stock price” is used to serve us, not to guide us Example 1. https://youtu.be/Gm1FqNO4taM?t=769 Buffett said that “stock price” is used … Continue reading “Ge Ba’s wonderful views on the article “Misunderstanding of price and value””

Amazon vs. Alibaba

The businesses of Amazon and Alibaba are almost the same in all aspects, so the two are highly comparable. Just as Amazon’s stock price is not very good this year, and Alibaba has collapsed by more than 40% now, let us compare the two e-commerce giants in China and the United States. Alibaba is a … Continue reading “Amazon vs. Alibaba”

Rule 40

Differences between Taiwan and U.S. listed companies Investors are most concerned about the growth of the company and how much money it can make. In particular, the profitability conditions for companies listed on the US stock market are relatively loose, unlike Taiwan or China, which highlights corporate profitability as a necessary condition for listing. Just … Continue reading “Rule 40”

US and Taiwan stocks investors have very different valuation methods

Let me start with the conclusion. The valuation method of U.S. stock investors is mainly based on the Price-to-Sales Ratio (P/S or PSR). It also talks about the P/E ratio, but it does not pay as much attention to the price-to-sales ratio (please note that I mean relatively speaking, the PE ratio is of course … Continue reading “US and Taiwan stocks investors have very different valuation methods”

Software PE ratio is about twice that of hardware. What is the basis?

A reader once asked me when I discussed the valuation of the software industry on section 3-2 of my book “The Rules of Super Growth Stocks Investing.” mentioned that the P/E ratio of software companies is about 20 times; I also said that the P/E ratio of software companies is about twice that of hardware … Continue reading “Software PE ratio is about twice that of hardware. What is the basis?”

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