Jim Sinegal spent his career building one of the most successful retailers in the U.S.: Costco. Founder, chairman, and former longtime CEO, Sinegal turned Costco into a $39 billion chain of stores notable for their high levels of customer loyalty.

Last month, The Motley Fool’s own founder and CEO, Tom Gardner, ventured to a Costco warehouse in Florida for an interview with Sinegal. In the clip below, Sinegal talks about the only two stocks he owns, and why he thinks Trader Joe’s is a model of how to build a retail franchise. (A transcript is provided below; running time: 2:11.)