PriceSmart, Inc. PSMT

PriceSmart is a niche, Latin-American cousin of Costco: a paid-membership model, fast turns, and a growing private-label engine all combine to throw off improving returns on each new club. The balance sheet is squeaky-clean and incremental ROIC comfortably exceeds the cost of capital, giving it the raw ingredients of a steady compounder. Yet the compounding story comes with baggage—currency traps, political flare-ups, and an ultimately finite store runway. At today’s price you get a sturdy, well-run business with modest upside and a real but manageable set of risks rather than a screaming bargain or a bullet-proof fortress.