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All investors want to generate robust returns in an effort to improve their financial lives. Had you owned Costco Wholesale (NASDAQ: COST) a few decades ago, you would have done a great job fulfilling that mission.

In the past 30 years, shares of the leading warehouse club operator have produced a total return of 15,000%. This would've turned a starting $6,700 sum into a cool $1 million. That's the kind of performance that can drive increasing interest from market participants.

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So, could investing $10,000 in this retail stock today make you a millionaire?

Selling quality merchandise at low prices in a no-frills environment never goes out of style. Costco is showing that its business does well no matter the macro backdrop. It posted same-store sales growth of 5.9% in fiscal 2025 (ended Aug. 31, 2025). And in the second quarter of 2026 (ended Feb. 15), this figure rose by 7.4%.

In uncertain times, Costco is a top shopping destination. Its paid membership base of 82.1 million, with a global renewal rate of 89.7%, proves this point.

Looking at this entire decade, Costco has been able to successfully weather a slew of headwinds, growing net profits in a consistent manner. Amid the COVID-19 pandemic and the ensuing surge in inflation to rising interest rates, supply chain issues, and geopolitical turmoil, this business continues to excel. Investors should be very confident that Costco can handle whatever gets thrown its way in the future.

In my view, aspiring millionaires hoping for a 100-fold gain that grows $10,000 into $1 million are probably thinking of it occurring over a 25-year time frame, for example. This translates to a 20.2% annualized rate of return, which would be extraordinary.

Do I think Costco, at its current scale and market capitalization of $456 billion, can achieve this going forward? No. It's just too big of a business. This higher starting point naturally limits the upside that shareholders have. It's also worth mentioning that investors shouldn't depend solely on a single stock to turn them into millionaires. The best thing to do is build a diversified portfolio that performs well over the long run.

But is Costco still a smart buying opportunity right now? Again, I don't believe so. While this is a high-quality company, its valuation is extremely expensive. The stock trades at a price-to-earnings ratio of 53.5. If you can believe it, this multiple is 62% higher than what Nvidia, which sits at the center of the artificial intelligence boom, trades for these days.

Costco is a great company, but for now its stock should sit on the watch list.

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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Nvidia. The Motley Fool has a disclosure policy.

Could Investing $10,000 in Costco Make You a Millionaire? was originally published by The Motley Fool