Show notes
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.
Highlighted moments
you could raise the price of a bottle of ketchup to $1.03 instead of $1, and no one would know. Raising prices just 3 percent would add 50 percent to our pre-tax income. Why not do it? It's like heroin. You do it a little bit, and you want a little more.
“Costco mandates that the item you sell them is a unique skew that the shopper can't buy anywhere else. So there's not even any comparison shopping.”
“On $230 billion of sales, they keep $7.5 billion in operating income. I've just never seen a company give more consumer surplus than Costco.”
Transcript
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