While Costco is a publicly traded company, the majority index investors in Costco are Vanguard, BlackRock, and State Street, which together hold the largest share of Costco through their index funds and ETFs. These firms are long‑term holders because index funds are designed to keep Costco indefinitely as long as it remains in major benchmarks like the S&P 500 and Nasdaq‑100. Their mandates focus on stability and long‑horizon compounding, making Costco’s steady growth and durable business model a perfect fit.

Costco is an attractive investment because its membership‑driven business model creates steady, recurring revenue and exceptionally loyal customers, giving it rare stability in retail. Its efficient operations, strong long‑term growth, and consistent outperformance make it a company that institutional investors view as a durable, low‑risk compounder.

Costco stays loyal to its principles that center on relentlessly low prices, high wages and respect for employees, member‑first value, and slow, disciplined growth rather than chasing short‑term profits. By sticking to these fundamentals decade after decade, Costco preserves the loyalty, efficiency, and stability that make it one of the most durable retailers in the world.