Costco's ability to thrive in a competitive retail landscape owes much to the late Berkshire Hathaway vice‑chair Charlie Munger, whose simple but powerful advice to "stick to your knitting" continues to define the company's strategy.
Charlie Munger's Long-Term Vision Guides Costco Strategy
In an interview with Chief Executive magazine, Costco chairman Hamilton "Tony" James reflected on Munger's decades-long influence on the board, as reported by Business Insider.
Munger, who served as vice chairman of Berkshire Hathaway until he died in 2023, sat on Costco's board for more than 25 years and was among its largest shareholders.
"For a giant company like Costco with huge pressures, understanding what's going on can be complex and confusing, but not for Charlie, who had an unerring compass to see through it all to stay on the right path," James said.
"His voice was very strong and clear on the matter. He'd remind us, ‘The right thing for the long term is what we've always been doing, so let's not get confused.'"
Iconic Hot Dog Deal Symbolizes Costco's Commitment To Customers
That philosophy is perhaps best illustrated by Costco's refusal to raise the price of its iconic $1.50 hot dog and soda combo, unchanged since 1985.
When former CEO Craig Jelinek once floated the idea of an increase, co-founder Jim Sinegal reportedly snapped back, "If you raise the [price of the] effing hot dog, I will kill you. Figure it out."
See Also: Warren Buffett's Real Estate Business Sounds Alarm: ‘Overpriced' Homes Need Reductions
Munger's Timeless Lessons On Ownership, Learning And Market Resilience
In 2017, Munger visited the Ross School of Business and emphasized that long-term success comes from thinking like an owner, not a corporate climber.
He recalled how he and Warren Buffett moved from buying undervalued companies to acquiring high-quality businesses with lasting advantages, always keeping a shareholder mindset.
Munger also highlighted the importance of continuous learning, calling successful people "learning machines" who grow a little wiser each day.
He advised staying calm during market volatility, viewing downturns as opportunities for long-term wealth. Drawing on Berkshire Hathaway's history, where shares had dropped over 50% multiple times, Munger continued buying undervalued stocks with Buffett, illustrating patience and a long-term approach.
Munger's philosophy of ownership thinking, lifelong learning, and market resilience remains a blueprint for lasting business and investment success.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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