Warren Buffett - Citi Won't Get Rich Off of Costco Deal

By Gavin | March 05, 2019

I imagine we knew some kind of deal like this would be coming well if somebody was going to get the mid and American Express learned the week or two ago, that they were not the one that was going to get it. I don't know the terms of the new deal, but I don't think Citi will get rich off of it.

Why? You think there wasn't much margin, to begin with, them, that would be my guess, but I thought with Costco it wasn't necessary, the margin that was helping as much as the business.

You get these customers who come in, and they use those cards in other projects, I'm counting all of that the business you get outside of Costco and everything, I mean it though the co-branded cards and this isn't just true Costco, the airline's renewed and the co-branded cards become a quite a competitive business.

It's much better to have your own proprietary card, it is worth a whole lot more than a corporate card.