Profile picture
, 4 tweets, 1 min read
My Authors
Read all threads
1/ Munger: "Amazon has more to fear from Costco than Costco has to fear from Amazon. Because [Costco has] a better warehouse situation that is much cheaper- plus a public that totally believes that anything they sell will be high quality and low price."
2/ Charlie Munger: "they're coming late to any sort of delivery system. But in the end they’ll be more efficient and they’re already more trusted. So I would say all the figures show that Costco has nothing to fear from Amazon."
3/ "Charles T. Munger has been a director of Costco since January 1997."

"In 2001 Jim Sinegal met Jeff Bezos in a Starbucks in Bellevue, Washington and told the Amazon CEO about the Costco business model." google.com/amp/s/25iq.com…
4/ The question Munger was answering was:

Q: Do any companies have a sustainable moat against competition from the likes of Amazon? Who is Amazon-proof?

He wasn't saying Amazon would not do well or spectacularly well. Charlie was talking about Costco, where he's a director.
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Tren Griffin

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

More from @trengriffin see all

Profile picture
Tren Griffin
@trengriffin
"The Yale endowment’s most recent public value was $30.3B as of last June, making it the second-richest private U.S. college. About 2.75% of assets are targeted for domestic equities and 13.75% for foreign stocks." google.com/amp/s/ca.finan…
"The Yale endowment’s equities increased to $267.4 million as of the end of March from $62.8 million at the end of last year as the Ivy League school greatly expanded its holding in the SPDR S&P 500 ETF and established a new position in the Vanguard FTSE Developed Markets ETF."
At 774 colleges and universities endowments grew, on average, by 5.3% over the past fiscal year. Those endowments grew by, on average, 8.4% per year over the past decade.

Yale’s endowment has shown 5.7% growth over the past year and 11.1.%. yaledailynews.com/blog/2020/02/0…
Read 3 tweets
Profile picture
Tren Griffin
@trengriffin
"Expected long-term cash flows, discounted by the cost of capital—not reported earnings—determine stock prices." expectationsinvesting.com/pdf/earnings.p…

Doing the cash flow analysis requires actual work, so people focus on the earnings numbers that must be submitted in SEC compliance documents.
"With discounted cash flow models, the value is sensitive to the inputs. But the assumptions underlying the inputs are explicit. You can compare them to base rates, discuss them, and debate them. With multiples, those assumptions are buried." valuewalk.com/wp-content/upl…
Many people love to use ratios since they hate doing work. The idea that there is advantage in using ratios, especially when they are that easy to find and use, is a triumph of hope over experience. Salespeople do use ratios effectively to tell stories to charge fees though!
Read 3 tweets
Profile picture
Tren Griffin
@trengriffin
It's surprising how Quibi has had trouble filling the top of the sales funnel and converting users to paid given how much viral content and positive word of mouth you see on Twitter. Wait! That's not true.

Does Quibi have a premature scaling problem?

a16z.com/2017/02/18/12-…
Spending capital on growth before you have a product that people want to buy (AKA premature scaling) is a giant bonfire of cash. Andy Rachleff puts it this way: “If you don’t have exponential word of mouth growth, you don’t have product/market fit.” First nail it, then scale it.
Long time Netflix board member and 🐐 entrepreneur Rich Barton: "If you really have a flywheel, it is OK to spend money to get it spinning. It is OK to do un-economic things to hand-crank stuff, so long as once it is spinning you can take your hand away.” No flywheel? CAC kills!
Read 4 tweets

Embed code for your website

×
Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!