Making Cents Sense

Costco is returning billions to shareholders after another year of strong sales, growing profits, and impressive cash generation. But with the stock trading above 52 times annual earnings, investors need to distinguish between an exceptional business and an exceptional investment. There is something wonderfully ironic about Costco. Millions of Americans pay an annual membership fee for the privilege of buying products at discounted prices, while investors are willing to pay an extraordinary premium to own a piece of the company providing those discounts. The customers come looking for bargains. The shareholders, apparently, have decided that bargains are optional. And perhaps that contradiction explains why Costco remains one of the most fascinating businesses in the stock market. On November 10, 2026, Costco Wholesale (NASDAQ: COST) announced a special cash dividend of $30 per share, representing approximately $13.3 billion in total shareholder distributions. The payment is scheduled ...

CoreWeave delivered $3.66 billion in quarterly revenue, increased its contracted revenue backlog to $132.5 billion, and raised its full-year outlook. Yet the artificial intelligence infrastructure company remains deeply unprofitable, carries nearly $47 billion in debt, and is spending billions more than it generates. With shares down more than 40% over the past month, investors face a difficult question: Is CoreWeave an extraordinary growth opportunity or a warning about the financial costs of the AI revolution? There is something fascinating about a company that can nearly triple its revenue in a single year and still leave investors wondering whether it can afford to keep growing. Ordinarily, that kind of expansion would have Wall Street celebrating. Analysts would be raising price targets, investors would be discussing market dominance, and executives would be congratulating themselves on building the next great technology empire. But artificial intelligence has introduced a rather ...

The Dow surged more than 1,100 points Monday as oil prices collapsed and investors returned to beaten-down technology stocks. But Tuesday morning's inflation report delivered an uncomfortable reminder: Falling energy prices don't automatically mean inflation is under control. With the Federal Reserve considering another interest-rate increase, investors face a market where strong economic growth and expensive money could exist simultaneously. There is something almost theatrical about Wall Street's ability to change its mood overnight. One day, investors are convinced that artificial intelligence is overvalued, the economy is heading toward trouble, and the stock market has finally run out of reasons to keep climbing. The next day, the same investors are enthusiastically purchasing the same companies they couldn't sell quickly enough just a few trading sessions earlier. Apparently, financial certainty has a remarkably short shelf life. On Monday, November 9, 2026, the D...

The ten largest holdings in the S&P 500 now account for nearly 38% of a traditional index fund's assets. After another brutal technology selloff, investors are discovering that owning 500 companies doesn't necessarily mean their money is evenly diversified. An overlooked alternative has quietly outperformed over the past year, but its advantages come with trade-offs that deserve serious consideration. There is something wonderfully misleading about the phrase "diversified index fund." Most investors hear those words and imagine their money spread reasonably evenly across hundreds of American businesses. They picture a little exposure to technology, some healthcare, a few industrial companies, financial institutions, consumer products, and perhaps an energy company or two. What they probably don't imagine is that nearly 38 cents of every dollar invested in one of America's most popular index funds is concentrated in just ten stock positions. Yet that is pre...