Best Buy's Co-Founder Is Getting Out While He Can

Shares of electronics retailer Best Buy (NYSE: BBY  ) are down roughly 3% today on the news that co-founder Richard Schulze plans to start selling shares of the company he founded. This is a dramatic turnaround from the former CEO's attempts to take Best Buy private only a few months ago. Does Schulze know something we don't? According to him, he's just looking to "diversify assets and raise money," but Fool One associate advisor David "The Legend" Meier thinks the CEO has a different goal entirely.

David thinks that it's much more likely Schulze is simply looking to cash out on Best Buy's big gains over the last year. Best Buy shares are up more than 100% in the last 12 months, a 180 from where the company was at the beginning of the year. The company has enjoyed a good run, but David is concerned about where it's heading. Best Buy has used dramatic cost-cutting methods to improve earnings, but its sales continue to contract as it competes with companies like Amazon. This means that as Schulze sails into the sunset, investors may be left holding the bag.

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of the last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the "3 Companies Ready to Rule Retail" in The Motley Fool's special report. Uncovering these top picks is free today -- just click here to read more.

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2612458, ~/Articles/ArticleHandler.aspx, 9/28/2016 6:48:51 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 4:04 PM
BBY $37.68 Down -0.57 -1.49%
Best Buy CAPS Rating: *