6 Lessons To Learn From Amazon, Costco and Dollar Tree

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Costco, Amazon, and Dollar Tree display numerous measures of quality that appeal to investors. These days, retail stores are generally seen as poor investments, but each of these companies manages to stand out. Sometimes there's an X factor, but strong businesses begin with a strong management team. For example, Costco's founder Jim Sinegal is famous for defending the hot dogs as a loss-leader. Shorter sighted managers would try to milk the food court for a profit, but Sinegal understands that brand value is one of the few ways to stand out in retail. With good management and a popular brand, the next milestone is achieving economies of scale. With traditional businesses, we look for good qualitative factors before expecting to see results in the numbers.