Episode Overview

Podcast: Becker Private Equity & Business Podcast
Host: Scott Becker
Episode Title: Microsoft, Costco, & the Race to $5 Trillion 1-1-26
Date: January 1, 2026

This episode, hosted by Scott Becker, centers on two business giants—Microsoft and Costco—as exemplars of stocks with potential for generational wealth. Scott discusses recent commentary from Motley Fool regarding these companies' long-term value and brings attention to the ongoing race among tech giants to reach a $5 trillion market cap, with a special focus on Alphabet (Google), Nvidia, and Microsoft. The show blends analysis, personal perspectives on stock ownership, and market context for these leading companies.

Key Discussion Points & Insights

1. Microsoft and Costco: Stocks to Buy and Hold Forever

• Scott highlights a recent Motley Fool article recommending Microsoft and Costco as “buy and hold forever” stocks.
• Emphasizes Costco’s resilience and consistent performance, especially in a challenging retail environment.
• Microsoft’s diverse business operations (cloud, B2B software, LinkedIn) make it a formidable long-term investment.

Quote:

“Costco over a long period of time seems to keep on performing really well in a difficult retail environment. So give them great credit.”
— Scott Becker, [01:09]

Quote:

“Microsoft… It’s got this great business to business software. It’s got LinkedIn. It’s got so many different pieces of the puzzle that let’s hope it has a great year.”
— Scott Becker, [01:32]

Personal Portfolio Disclosure

• Scott mentions direct ownership of Microsoft but not (yet) Costco, underscoring the episode's personal angle.

2. Market Cap Race to $5 Trillion

• Discussion of another Motley Fool article exploring which company—Nvidia, Alphabet (Google), or Microsoft—will reach a $5 trillion market cap first.
• The article's "hint, it's not Nvidia" sparked debate, suggesting Alphabet may outpace the others.
• Breakdown of recent market cap standings:
  • Nvidia: #1 in market cap as of recording
  • Apple: #2, but not currently seen as the favorite for the $5 trillion milestone
  • Alphabet (Google): #3, spotlighted for strong growth, profits, and margins
  • Microsoft: #4, described as a consistent profit engine despite somewhat slowing growth

Quote:

“They think Google Alphabet has a great chance hitting 5 trillion first. And I’m not sure if it’ll be Google Alphabet or Nvidia. They also mentioned, in the same story, Microsoft again.”
— Scott Becker, [02:07]

Quote:

“Microsoft seems to have a little bit slowing growth but still a great profit engine. Google seems to have both great growth and great profits and great margins. Nvidia, all those things as well…”
— Scott Becker, [02:26]

Notable Market Trends

• Apple no longer widely considered a favorite for the next $5 trillion milestone, but Scott cautions against counting the company out due to its powerful ecosystem.

Quote:

“Apple’s no longer talked about as one of the most likely to hit 5 trillion. But you never know with Apple, too, because they’ve got so many pieces of that ecosystem that can make that grow as well.”
— Scott Becker, [02:45]

3. Investment Themes and Closing Thoughts

• Restatement of two key themes:
  1. Microsoft and Costco as generational wealth-building stocks.
  2. The intensifying competition among big tech to become the first $5 trillion company, with Alphabet identified as having “as good a shot as Nvidia.”

Quote:

“One concept: Microsoft and Costco as two stocks sold for generational wealth… The second story was: which is the stock most likely to make it to 5 trillion.” — Scott Becker, [02:58]

Timestamped Segment Highlights

• 00:27-01:09: Introduction and focus for the episode; personal investment perspective.
• 01:09-01:57: Discussion of Costco’s retail strength and Microsoft’s multi-faceted business.
• 01:57-02:45: Breakdown of the Motley Fool’s $5 trillion market cap analysis; discussion of Alphabet, Nvidia, Microsoft, and Apple.
• 02:45-03:15: Recap and reinforcement of central takeaway messages.

Notable Quotes

• “We are a holder directly of Microsoft. This may or may not inspire me to be a holder in Costco as well.”
  — Scott Becker, [01:19]

• “Microsoft seems to have a little bit slowing growth but still a great profit engine. Google seems to have both great growth and great profits and great margins.”
  — Scott Becker, [02:26]

• “So Microsoft and Costco, two stocks for generational wealth… and the race to 5 trillion.”
  — Scott Becker, [02:58]

Conclusion

Scott Becker’s episode offers listeners a focused, contemporaneous look at two stalwart stocks—Microsoft and Costco—while situating them within the broader context of the ongoing race among tech titans to reach a historic market valuation. His blend of personal insight, reference to expert commentary, and succinct recaps make this episode both informative and practical for investors considering their long-term portfolio strategy.