Costco attracts investors that want to own a well run company that is a very popular place to shop. The investing thesis is simple, but the intrinsic value of $COST is much lower than the stock price. This stock is too expensive and there are stocks in other sectors that provide a better opportunity for long term investors.

The war extends in Iran is disrupting to global oil supply and this result is oil prices that are over 30% higher in 2026. If oil prices continue to increase, stocks in oil stocks will continue to rise quickly. This is one of the simplest investing themes that may be just beginning.

Software stocks have been beaten down over the past 12 months as the story that AI could hurt these businesses. Earnings reports from software companies shows that revenues are not going down, and instead are rising. The prices on these equities are very low and discounted versus the intrinsic value of the shares. The rally in software stocks may be a great place to achieve high returns for the next 12 to 24 months.

The stock market is selling off software software stocks due to the theory that AI will lower the moats and bring in competition into these historically highly profitable companies.

The software industry has seen new paradigms and big leaps in technology before, and the strong got stronger on those occasions. Intuit has grown it’s revenues, customer base and enterprise value for more than 40 years. In that time the internet was introduced and SaaS was a new invention that completely changed the software industry.

Intuit advanced and improved their market position after this fundamental industry changes, and I expect $INTU will again will evolve quickly to use AI as an opportunity.