Munger Praises Costco Model, Says Home Depot and Floor & Decor Followed Suit for Growth

Charlie Munger loves Costco's business model of providing exceptional value through high sales volume and low occupancy costs.

Munger says Home Depot copied this same model in the home improvement space to deliver great returns.

Munger believes Floor & Decor is copying Costco's model by having large warehouse stores focused on flooring and decor.

Floor & Decor has seen 14 straight years of same-store sales growth showing the model resonates.

With room to open 300 more stores, Floor & Decor has a long runway for growth making it an attractive investment.