Using Warren Buffett principles, would he be interested in buying Costco at the moment?

Warren Buffett would likely be interested in buying Costco at the moment. Here's why:

1. Strong Financial Performance: Costco has shown robust financial performance, with annual revenue and operating income growth of 7.4% and 6.4%, respectively. This consistent growth is a key criterion that Buffett looks for in a company.
2. Attractive Valuation: Costco's price-to-earnings (P/E) ratio is 50.06, its price-to-book (P/B) ratio is 16.5, and its price-to-sales (P/S) ratio is 1.54. These ratios suggest that the stock is reasonably priced relative to its earnings, book value, and sales, which aligns with Buffett's value investing approach.

3. High Return on Equity: The forecast for Costco's return on equity (ROE) is 24.7% in 3 years. Buffett often looks for companies with strong ROE, as it indicates efficient use of equity.
4. Strong Membership Growth and Renewals: Costco's membership base is growing, with a renewal rate of more than 90% worldwide. This provides a stable revenue stream and is a factor Buffett considers when evaluating the long-term potential of a company.
5. Strategic Growth Prospects: Costco is expanding its footprint both domestically and internationally, with plans to open new stores annually. This strategic expansion could lead to significant growth opportunities, which Buffett appreciates.
6. Industry Position: Costco is outperforming many of its peers in terms of stock growth, with its stock price having soared 89,000% since its initial public offering. This track record of success would be noticed by Buffett.

While Costco's high P/E ratio might seem concerning, Buffett has been known to overlook this metric if he believes the company has other strengths, such as strong growth prospects, a durable competitive advantage, and a competent management team. Given Costco's strong financial performance, attractive valuation, high ROE, and strategic growth prospects, it would likely pique Buffett's interest.