Amazon has emerged as a dominant force in the field of e-commerce, but well-known investor and Berkshire Hathaway vice chairman Charlie Munger said Costco still has a big advantage over its retail rival.
“Costco, I think, is one thing Amazon doesn’t have. People really believe in delivering tremendous value to Costco, ”Munger said during the annual journal shareholder meeting of the Daily Journal Corporation, according to Yahoo Finance. “And that’s why Costco presents some danger to Amazon. Because they have a better reputation for providing value than practically anyone, including Amazon. ”
How was Amazon painted?
In February, Amazon announced that it posted revenue of 6 386.1 billion in fiscal year 2020, as homebound shoppers turned to digital options during the coronavirus epidemic. Costco, a traditional brick-and-mortar retailer that uses the membership-only model, reported revenue of 3 163.2 billion in its 2020 fiscal year, which ended last August.
|AMZN||AMAZON.COM INC.||Held at 3,159.53||-34.97||-1.09%|
|Costs||The entire corporation of Costaco||340.70||-1.45||-0.42%|
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Munger is a longtime proponent of the Costco brand, having served on the company’s board of directors since 1997. They also have a minority stake in the company.
In November, the 13F filing revealed that Berkshire Hathaway had sold its entire stake in Costco, which was valued at approximately 1. 1.3 billion at the time.
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According to Forbes, Munger has a personal fortune of about 2 2 billion.