The late investor Charlie Munger, who served on Costco's board for over 25 years, provided clear advice to the retailer: "stick to our knitting." Chairman Hamilton James reflected on Munger's influence, emphasizing the importance of adhering to core values and principles. Munger understood that for a complex organization like Costco, maintaining a clear focus was crucial. His strong voice often reminded the board to avoid distractions, and James highlighted the open debate culture that allowed for respectful disagreement with Munger's guidance.
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.
Charlie understood we didn't have to do anything different than that. 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.'
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