Berkshire Hathaway (BRK.A) has a long history of buying retail companies with strong operators at the helm and being willing to pay up for those companies. It was the shift away from cigar butts and cheap companies that helped Berkshire get into companies like Costco (COST) several years ago. I still recollect Berkshire paying around $80 per share for Costco despite it trading at a significant premium to other retailers.
The power of compounding takes care of paying up for quality companies as long as your holding period is measured in years or decades. Berkshire Hathaway did very well with its investment in Costco and they exited the position in the third quarter of 2020 at prices north of $300. For a short period it looked like they made the right decision as the stock languished and even dipped in early 2021 before nearly doubling again.