Post #14391 by unquarked on the US Policy board

Halls of Shrewd'm / US Policy ❤

Unthreaded | Threaded | Whole Thread (12)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 12

I was unaware of Charlie Munger's relationship with Costco until reading this excellent article. I can't imagine that he favored Costco over Berkshire or some of his other business affiliations, but then I didn't even know he was on Costco's board. It's a long, but rewarding podcast with transcript also available. I enjoyed simultaneously reading and listening. It's not really about Charlie Munger, but it is an informative primer on the retail industry and its superstar, Costco. It makes me thankful that my second largest holding after BRK is COST.

The Complete History & Strategy of Costco

Costco is not only Charlie Munger’s favorite company of all time (plus he’s on the board, natch), it’s an absolutely fascinating study in how seemingly opposite characteristics can combine to create incredible company value. For instance: Costco has the cheapest prices of any major retailer in America — and also the wealthiest customer base. They pay their hourly workers 30% above the industry norm (and give them excellent healthcare + 401k benefits) — and are almost 3x more profitable on labor than Walmart. Speaking of Walmart, Costco stocks 40x fewer SKUs than their Bentonville-based rivals — yet sells an average of 15x more volume of each. And oh yeah, practically all of Costco’s C-Suite started their careers as baggers and checkout clerks! Tune in for a mind-bending exploration of one of the world’s most iconic — and iconically unique — companies.

https://www.acquired.fm/episodes/costco

Tom

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (12)

Prev | Next

Announcements

US Policy FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.