Costco

I wanna break down that concept of working capital because the Harvard chapter titled Cash is King notes that mastering working capital is the foundation of massive successful businesses.

Like Costco.

Let's look at Costco's mechanics.

They operate on a negative working capital model, right?

They do, and it is a brilliant financial advantage.

How does a negative working capital model even work?

Well, Costco turns over its inventory incredibly fast.

They buy a massive pallet of cereal, put it on the floor, and you, the customer, buy it and pay cash at the register today.

[laughs]

Plus, I will say the value pack at Costco is so cheap for, like, nine Scrub Daddies.

It's amazing.

They're great.

I was just looking at, like, you know, these consumer discretionary stocks, you know.

You look at names and, you know, I know we don't get to, into, like, individual names much on the show here, but you look at, like, what's happening with Nike, Lulu, I think Home Depot, even Walmart, Costco, all these, like, s- major consumer stocks are just getting crushed right now.

Yeah, but Nike and Lulu, they just, they, they went woke and they got smashed.

Like, the moment that you're gonna get away from your core brand, you're gonna get destroyed.

Yeah, okay.

No, I, I mean, yeah, that's fair.

I mean, I think people have flagged Walmart and Costco too, but I mean, anyways.

Well, that's interesting.

[laughs]

And let's just say, friends of the podcast, she wasn't working at the Costco.

No, she was not.

[laughs]

"Stores allow customers to see the brand's products in person.

The growth of warehouse clubs like Costco and Sam's Club has also likely been unhelpful to a player like Omaha Steaks, as its bulk offerings are a source of competition," he said.

I've never gotten an Omaha Steak.

[laughs]

I got to go.

I got to go to Costco.

Oh, okay.

Okay.

What are you getting at Costco? I got to get Mums and Metamucil.

Mums and Metamucil.

It just sounded right coming off the tongue.

Mm-hmm.

The two pilots survived and were interviewed Wednesday by investigators.

Before I give you some more details on this, yesterday, so Melinda had gone and done an early Costco run.

We always do Costco on Fridays, but they did a, we're going there again today.

Not that it matters to you, but I'm sharing anyways.

So they ended up, I don't know why they went yesterday.

Cause you want to pick a fight.

So apparently and it was it was I probably would have done the same thing.

She was talking about this lunatic that was driving on one hundred and twenty fifth heading to Costco.

There's total magic in that, in my opinion.

And by the way, that might be a good idea for you to adopt, you know, go to Costco and buy all the soap and buy all the toothpaste and just shove it in the garage and shoot.

Okay.

So things that are rare, unique, have more value, right? Like if something is rare, something is unique.

And all of a sudden it was like, there's a devaluation and your money's worth zero and there's no more dollars in the country.

And so even though I really tried to be like, she like literally bought a safe deposit box from Costco and she's like, and that's where my money is.

And I'm like, no, mom, mom, no, no.

And I'm not going to change her at this point.