Costco is teaming up with Wheels Up to offer a one-year private jet travel membership. Kristina Partsinevelos from FOX Business with more.
Amazon has emerged as a dominant force in the growing e-commerce industry, but Costco still has a major advantage over its retail rival, according to famous Berkshire Hathaway investor and vice president Charlie Munger.
“Costco, I think, has something that Amazon doesn’t have. People really trust Costco to deliver huge amounts, ”said Munger during the Daily Journal Corporation’s annual shareholder meeting, according to Yahoo Finance. “And that is why Costco poses some danger to Amazon. Because they have a better reputation for providing value than just about anyone, including Amazon. “
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In February, Amazon revealed that it generated record revenue of $ 386.1 billion in fiscal 2020, as domestic consumers opted for digital options during the coronavirus pandemic. Costco, a traditional brick and mortar retailer that uses a member-only model, reported revenue of $ 163.2 billion in its fiscal year 2020, which ended last August.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 3,159.53 | -34.97 | -1.09% |
| COST | COSTCO WHOLESALE CORPORATION | 340.70 | -1.45 | -0.42% |
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Munger is a long-time defender of the Costco brand, having served on the company’s board of directors since 1997. He also has a significant minority stake in the company.
In November, a 13F lawsuit revealed that Berkshire Hathaway sold its entire stake in Costco, which was worth about $ 1.3 billion at the time.
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Munger has a personal net worth of approximately $ 2 billion, according to Forbes.