Charlie Munger reflects on one investment Warren Buffett passed up — Costco

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Munger has been a loyal supporter of Costco, calling it one of the best investments of his life, but Buffett was never convinced that it could be a home run.

Warren Buffett and his longtime business partner Charlie Munger almost never butt heads, but there has been one rare area of disagreement between the two investment legends. The 99-year-old Munger has been a loyal, stalwart supporter of Costco Wholesale Corp., calling it one of the best investments of his life — and vowing to never sell a single share. But the 93-year-old "Oracle of Omaha" was never really convinced that the membership-only, big-box store could be a home run.

You really have to set out to do it and then do it with enthusiasm every day, every week, every year for 40 years. It's not so damned easy." Munger owned 188,000 shares of Costco as of October, according to FactSet. Costco has grown from less than $5 a share in the early 1980s to more than $560 a share today. Berkshire had previously held a 1% stake in Costco, but the owner of Geico insurance and the BNSF railroad, exited the position in 2020.

 

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