Is Costco Stock Too Woke to be Profitable?

Costco stock was the target of some pretty harsh commentary last week. 

This, after the company’s DEI hiring practices made the news.

Most of the attacks came from folks accusing the company of being “too woke.”

Like this one, for instance…

I’m not saying I necessarily favor DEI policies.  Particularly if those policies supersede a meritocratic process.  But why anyone cares if the checkout person at Costco is trans or the membership manager is a 90-year-old black woman in a wheelchair is beyond me.  As long as I can still buy tubs of pretzel sticks and a 2-pound block of Cabot Cheddar Cheese for less than ten bucks, I’m good. 

Of course, from an investment perspective, identifying potential downsides to DEI practices would of course be considered sound due diligence.

Is Costco Stock Too Woke to be Profitable?

Now full disclosure: I don't own any stock in Costco (NASDAQ: COST).  But I was curious to see if the company’s DEI policies have negatively affected its profitability.  So I went to Costco’s “investor relations” and “careers” sections to do some digging.  I did a search for DEI, and couldn’t find anything.

Indeed, Costco has integrated what are now known as DEI policies in its hiring practices.  But this is the result of DEI catching up to Costco.  Not Costco chasing a DEI status.

According to former Costco Division Senior Vice President Roger Campbell, the company has always valued the principles of diversity, equity and inclusion.  Even before the term DEI existed. Telling Fox News,  "The term DEI didn’t even exist to us, it was the way we ran our business… it’s who we are."

Campbell said that when it came to hiring, Costco always sought to ensure the employees at their warehouses and stores reflected the communities they were located in demographically.  He says that Costco had no trouble achieving this goal, and never had to consciously alter its hiring practices to meet a certain quota.

"Diversity was a word that was used, but it was never ‘My gosh, we need to get a program. We need to train diversity.’"

Costco’s hiring practices may be vastly different from those of other companies, but it doesn’t seem like any of this has negatively affected the stock price. 

Over the past 15 years, Costco has delivered gains in excess of 1,600%.

Clearly, the company’s hiring practices have not impeded its ability to turn a profit.

Had you invested $10,000 in Costco 15 years ago, you’d now be sitting on nearly $350,000.  More than a quarter of a million dollars!  Even more, if you count a very generous 4.6% dividend. 

Of course, it’s all nonsense.  This labeling of things, such as DEI or ESG or whatever the left wants to demand or the right wants to outlaw.  Both of which have no place in an honest free market. 

Prior to Trump taking office, the far left wanted to mandate DEI and ESG practices for both private and public companies.  An absurd notion, to say the least.  Now, Trump wants to outlaw such practices.  Which is equally absurd.  Especially when you consider that 19 states’ attorneys general recently issued a letter to Costco demanding that the company eliminate its DEI programs in an effort to conform with Trump’s executive order banning DEI from the federal government. 

While such executive orders are completely admissible when it comes to government jobs, it has no teeth when it comes to the private sector.  And any attempts to do so violates the very fundamentals of free market capitalism.  

But I’m not here to have a pissing match over what Trump can and can’t do.  Nor do I care to debate the finer points of DEI.  Again, I don’t care.  I don’t have a horse in this race.  The only race I care about is the one that puts money in my pocket.  Which is why I’m writing to you today.

As you know, we’re currently diving headfirst into the whirlwind of a full-blown tariff war with Canada, Mexico and China.  And while tariffs have historically ended with disastrous consequences, today’s tariff war actually presents us with a huge opportunity.  An opportunity to capitalize on the chaos and rake in some serious wealth. 

Because thanks to this tariff war, you’re about to see the resurgence of “Made in America.”

You see, there was a time when “Made in America” meant booming factories and unparalleled prosperity.  That time is returning, bringing with it a wave of profit potential unlike anything we've seen in decades. 

This isn't just a trend.  It's a megatrend.  And for those who get in early, the returns could be life-changing. We're talking about potential gains that could rival the early days of tech giants.  Think 10x your investment or even more.  Indeed, this is your chance to be part of something historic.

Which is why the Energy & Capital research team just put together a new report called, "The #1 Investment to Profit From the Made in America Megatrend." And it reveals exactly how you can capitalize on this incredible opportunity.  It actually gives you a clear, concise roadmap to understanding the reshoring revolution that’s about to reshape the American economy.  As well, it includes the name and ticker symbols of five specific stocks that are best-positioned to ride this wave.

Look, feel free to bicker about DEI nonsense if you want.  But that’ll never make you rich.  This revitalization of “Made in America,” however, will.  So unless you hate money, I highly recommend you get some of this action for yourself now.

To a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is an editor of Energy and Capital as well as a contributing analyst for New World Assets.

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