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Legendary investor Charlie Munger, Berkshire Hathaway’s vice chairman and longtime business partner of Warren Buffett, predicted on Friday that big box retailer Costco will eventually compete with Amazon in expanding its e-commerce business.

Important facts

“Costco will at some point be a huge Internet player,” Munger said at the Sydney Sons conference in comments first reported by the company Australian financial report.

The 97-year-old believes that Amazon of Jeff Bezos “may have more to fear from Costco in terms of retail than the other way around”.

People “trust” the member-only retail chain with over 111 million cardholders, but also has “enormous purchasing power,” argues Munger.

Munger has been a member of Costco’s board of directors since 1997 and, according to records, owned approximately 166,000 shares in the company at the end of last year, valued at just over $ 62 million at the time.

Costco’s shares rose nearly 30% during the pandemic last year and have soared an additional 40% so far in 2021 due to the reopening of the economy.

The big box retailer, one of the largest in the world with over 800 warehouses, is investing heavily in its e-commerce business: Last year, Costco took over delivery service provider Innovel Solutions for around 1 billion US dollars.