Culture Wins

| May 14, 2018
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This is not a buy or sell recommendation just a prime example of how culture wins not only on the field of play but in business.

Costco pays incredibly good wages relative to competitors. Costco pays employees an average of 72% more per hour than rival Sam’s Club. That is awesome for the employee.

It’s done this for years and it is awesome for Costco too. Its labor turnover is rock bottom: 17% per year for Costco vs. 44% for Sam’s Club. This has reduced labor turnover so much that it remains competitive with high margins. In 30 years, Costco has never had a major employee strike or protest.

Shareholders have not paid the price: Costco stock is up more than seven-fold in the last 20 years, versus 2.5-fold for the S&P 500.

Culture Matters!


Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O


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