Costco was a great model with great culture

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The beauty of getting rich once is that you don't have to repeat the process. Patience for great opportunities is important, but recognizing and seizing them is crucial. During dinner, we discussed the connection between Costco's low price and high inventory turnover. The reason why others can't replicate it is because it requires consistent execution and a strong culture. The success lies in the combination of the business model and culture, along with 40 years of relentless hard work. Costco's story includes the cautionary tale of raising the price of ketchup by 3% – seemingly insignificant, but potentially disastrous.

We sit down with the legendary Charlie Munger in the only dedicated longform podcast interview that he has done in his 99 years on Earth. We’ve gotten to have some special conversations on Acquired over the years, but this one truly takes the cake. Over dinner at his Los Angeles home, Charlie reflected with us on his own career and his nearly 50-year partnership at Berkshire Hathaway with Warren Buffett. He offered lessons and advice for investors today, and of course he shared his speech on the virtues of Costco once again (among other favorite investments). We’re so glad that we got the opportunity to record and share this with you all — break out your notebooks, tune in, and enjoy the singular wit and wisdom of Charlie Munger.

A transcript is available here.

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Special thanks to Tiny for being the exclusive sponsor of this episode. You can get in touch with them here (just tell them Ben & David sent you), and order your very own bronze Charlie bust here.

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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.