When Berkshire Hathaway vice-chairman Charles Munger lamented the mistakes made in the company’s first 50 years under Warren Buffett, he cited the failure to buy Walmart Stores stock early enough in the retailer’s history. Judging by recent events, Buffett does not think Walmart is such a great idea for his company’s next half-century. Berkshire said in November it cut its holding in the retailer to 13-million shares as of September 30, marking the third straight quarter that Buffett’s company lowered its stake. Online shopping has shifted the balance of power among retailers, a trend that has become more evident this holiday season, and Walmart stock has trailed Amazon.com in recent years. "He makes mistakes too," Brian Yarbrough, an analyst with Edward Jones, said of Buffett. "There are a lot of better places to put new money than Walmart. They are going to have to continue to fight this headwind of Amazon." Buffett, 86, has long highlighted the vulnerability of even the largest r...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.