Question 1

How much would I have if I DCA'd $100/week into COST for 5 years?

Accepted Answer

Dollar cost averaging $100 per week into COST for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $36,411, a return of 40%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $25,968 and grew to $38,020 — a 46% return.

Question 2

What is the best DCA strategy for COST?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when COST is overextended — outperformed standard weekly DCA by 7% over 5 years. The enhanced strategy achieved a 46% return vs 40% for standard DCA.

Question 3

What would $100/week into COST be worth after 3 years?

Accepted Answer

Investing $100 per week into COST for 3 years (157 purchases, $15,700 total) would have grown to $17,168 — a 9% return. Enhanced DCA over the same period returned 5%.

Question 4

Is DCA into COST worth it?

Accepted Answer

Based on a 5-year backtest, DCA into COST returned 40% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 46% over the same period — a 7% gain in return, while deploying a similar or smaller amount of capital.

Question 5

How many shares of COST would I have after DCA for 5 years?

Accepted Answer

Dollar cost averaging $100/week into COST for 5 years would result in approximately 38 shares with a standard DCA approach (avg entry $679). Enhanced DCA targeting dips results in 40 shares at an average entry of $647.

Question 6

How does COST DCA compare to the S&P 500?

Accepted Answer

Enhanced DCA into COST returned 46% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. COST's performance reflects its volatility as a consumer staples asset. Enhanced DCA outperformed standard DCA by 7%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into COST?

Accepted Answer

Past backtest performance does not guarantee future results. COST is a consumer staples asset whose price can fall as well as rise. While DCA reduces timing risk by spreading purchases over time, losses are still possible if the price declines significantly. Always invest within your risk tolerance and consider your overall portfolio diversification.

Question 8

What is the Costco Wholesale Corporation dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into COST at regular intervals. Enhanced DCA improves on this by using RSI (Relative Strength Index) signals to increase buy amounts during market dips (oversold conditions) and reduce or skip purchases when the stock is overextended. Over the 5-year backtest, this timing approach has delivered 7% higher returns than standard DCA while deploying less total capital into COST.

COST DCA Backtest — Dollar Cost Averaging Results

COST DCA Results: Key Findings

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Dollar cost averaging into COST — backtest results

Buying the dips for Costco Wholesale Corporation

COST DCA backtest results: standard vs enhanced
Period	Standard DCA	Enhanced DCA	Alpha
1-Year	0%	3%	+3%
3-Year	9%	5%	-4%
5-Year	40%	46%	+7%