Why Warren Buffett Still Believes in Wal-Mart Stores, Inc.

Dividends and share buybacks have created a lot of value.

May 24, 2014 at 4:00PM

If there's one big company that's been in the crosshairs of both social activists and disappointed shareholders lately, it's Wal-Mart (NYSE:WMT). Though shares of the company are up a healthy 50% since late 2011, there's been trouble brewing on multiple fronts.

It's no secret that there are lots of folks out there who question how well Wal-Mart treats its everyday employees. Some might say as shareholders, the only thing investors should worry about is the company's financial performance. But even that is coming under scrutiny.

As my Foolish colleague Travis Hoium recently pointed out, the company's same-store sales domestically are falling, and margins are shrinking abroad. And all of this is happening at a time when the retail sector is actually growing.

These trends, however, haven't stopped the world's greatest investor, Warren Buffett, from gobbling up more shares of Wal-Mart. When Buffett's Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) released its 13-F filings recently, it showed that Berkshire's stake in Wal-Mart had increased by 17% with the purchase of 8.6 million Wal-Mart shares.

Berkshire's partial ownership of Wal-Mart dates back years, with the position growing large enough to garner recognition back in late 2005. Since then, Wal-Mart has grown to be Berkshire's fifth largest investment holding -- valued at roughly $4.4 billion.

So why does Buffett still believe in Wal-Mart when others don't? Check out the following slideshow to find out.

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Brian Stoffel owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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