đ Buffett made a big mistake; Munger talks Costco vs. Amazon; Fun fact about Cathie Wood
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The Daily Compound #001
Buffett: âI paid too muchâŠâ
Warren Buffett released his annual letter to Berkshire Hathaway shareholders on Saturday. Read all of his letters here.
On page two, Buffett says he made a mistake (âa big oneâ) in buying PCC in 2016. If you ever make a mistake, follow Buffettâs template. Heâs straight-forward, candid, and blames no one but himself.
đ Try This: Talk about your mistakes to avoid making them again. It works.
đŹ âIt's a good habit to trumpet your failures and be quiet about your successes.â
â Charlie Munger
Charlie Munger: âCostco presents some danger to Amazonâ
The Daily Journal annual meeting was last week. Charlie Munger was trending on Twitter before the meeting concluded. His thoughts on Costco vs. Amazon were not controversial, but they are worth discussing:
I do think [Costco] has one thing that Amazon does not. People really trust Costco will be delivering enormous value. And that is why Costco presents some danger to Amazon. Theyâve got a better reputation for providing value than practically anybody, including Amazon.
I donât 100% agree with this. Amazonâs customer obsession is similar to Costcoâs, and the customer loyalty metrics tell us that customers are getting value.
đ Remember This: Costco is obsessed with taking care of their customers and their hourly-wage employees. There is a constant drip of news about Amazonâs ârelationshipâ with warehouse workers. This casts a shadow on the Amazon brand and could very well come back to haunt them. All it takes is one Netflix documentary.
Related Tweet:
Who is Cathie Wood?
I wanted to learn more about Cathie Wood since she is becoming the most talked-about investors on the planet. Her fund, ARK Invest, is worth a look.
đ Did You Know: Wood named ARK Invest after the Ark of the Covenant. She had the idea while reading her Bible.
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