Robert O’Neill ‘23 pitched Costco Wholesale (NASDAQ: COST) on March 6, 2023. Costco operates membership warehouses and e-commerce websites based on the concept that offering their members low prices on a limited selection of nationally-branded and private-label products in a wide range of categories will produce high sales volumes and rapid inventory turnover. When combined with the operating efficiencies achieved by volume purchasing, efficient distribution, and reduced handling of merchandise in no-frills, self-service warehouse facilities, these volumes and turnover enables Costco to operate profitably at significantly lower gross margins (net sales fewer merchandise costs) than most other retailers. Costco often sells inventory before they are required to pay for it, even while taking advantage of early payment discounts. Robert’s investment thesis focused on the trends of consumers seeking value as the economy experiences a downturn due to inflation and higher interest rates. Costco’s management team is experienced and focuses on its members’ experience at the warehouses. Costco ensures that its warehouses offer members the highest quality products at the lowest competitive prices when compared to competitors. SMIF voted to buy 110 shares of Costco (COST) at market price funded by the sale of 660 shares of the Consumer Staples sector ETF (XLP) and cash in the portfolio.