Costco

Acquired

Ben Gilbert and David Rosenthal

Venturecapital, Ma, Investing, Acquisitions, Startups, Vc, Investment, Business, Technology

4.8 • 2.9K Ratings

🗓️ 21 August 2023

⏱️ 181 minutes

🔗️ Recording | iTunes | RSS

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Summary

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.

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‍Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.

Transcript

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0:00.0	I don't think I have ever been more in love with a company in a business model.
0:06.1	What are you, Charlie Munger?
0:07.4	It's just the deeper you dig, the more good things you find and usually it's the exact opposite of that.
0:13.3	It's like the opposite of being an early-stage venture capitalist.
0:17.5	Who got the truth?
0:20.5	Is it you, is it you, is it you?
0:23.5	Who got the truth now?
0:25.5	Is it you, is it you, is it you?
0:28.5	Sit me down, say it straight, another story on the way.
0:33.5	Who got the truth?
0:35.5	Welcome to season 13 episode 2 of Acquired.
0:38.5	The podcast about great technology companies and the stories and playbooks behind them.
0:42.5	I'm Ben Gilbert.
0:43.5	I'm David Rosenthal.
0:45.5	And we are your hosts.
0:47.5	What if I told you that there was one place where you could get all these things under one roof, a two and a half pound container of cashews, prescription eyeglasses,
0:58.5	a tank of gas, new tires for your car, 96 rolls of toilet paper, a new refrigerator, an outdoor shed,
1:06.5	a 10 carat diamond ring, some fresh prepared sushi, fine wine at a great price, and you could even grab a hot dog with a soda and a free refill on your way out for just a buck 50.
1:19.5	Ben, I don't believe you.
1:21.5	Hey, it has been the same price for 40 years now.
1:24.5	47 years.
1:27.5	Yes, most of you are very familiar with this Disney Land of Consumer Value that I'm referring to.
	...

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