Charlie Munger
👤 SpeakerAppearances Over Time
Podcast Appearances
Fees down 50%. And that's happening all over America. They feel had, misled, irritated. They've looked foolish to their own trustees.
Fees down 50%. And that's happening all over America. They feel had, misled, irritated. They've looked foolish to their own trustees.
There'll be somebody who'll find a new thing, but it gets harder and harder. I would argue one of the easiest ones was when they decided a little group around Home Depot, they would copy the Costco model and home improvements. And that was basically a good idea. And think of the money they made doing it. Yeah.
There'll be somebody who'll find a new thing, but it gets harder and harder. I would argue one of the easiest ones was when they decided a little group around Home Depot, they would copy the Costco model and home improvements. And that was basically a good idea. And think of the money they made doing it. Yeah.
Well, there was another one at Costco. Floor and Decor is the current imitator. And it's just this in vinyl, wood imitating vinyl flooring. They're running a Costco model. And they keep adding miscellaneous stuff to it, too.
Well, there was another one at Costco. Floor and Decor is the current imitator. And it's just this in vinyl, wood imitating vinyl flooring. They're running a Costco model. And they keep adding miscellaneous stuff to it, too.
Home Depot was the same. They copied everything.
Home Depot was the same. They copied everything.
How did Jim and you feel about that? Saul was not a crazy guy. He was domineering and so on. But he was also very intelligent.
How did Jim and you feel about that? Saul was not a crazy guy. He was domineering and so on. But he was also very intelligent.
But there aren't many opportunities like Home Depot and Costco. There aren't very many.
But there aren't many opportunities like Home Depot and Costco. There aren't very many.
They were too wedded by the ideas they already had. That's everybody's trouble. You just can't accept a new idea because the place is occupied by an old idea. They got in the habit of getting their real estate practically even nothing because they went into little towns where nothing was valuable. So always their occupancy costs were like zero, and they knew how to make big division stores.
They were too wedded by the ideas they already had. That's everybody's trouble. You just can't accept a new idea because the place is occupied by an old idea. They got in the habit of getting their real estate practically even nothing because they went into little towns where nothing was valuable. So always their occupancy costs were like zero, and they knew how to make big division stores.